Monthly Archives: June 2017

Mini DJIA Intraday Crash Update

The Mini DJIA dropped like a rock on Thursday, trashing a few of my wave counts in both directions. For every one wave count that gets trashed two more alternates can pop up, showing us another potential direction that this market can still go. 

The speed and the angle of this crash sure fits a “C” wave very well.  The entire rally up to the peak was also a diagonal, and the following correction can work as a zigzag, containing an expanded flat inside the 3 wave counter rally. The whole pattern has a flat top and a steep bottom angle which touch at 3 points. This is one of those times that parallel lines are not required.

As it sits right now, and after a 3 wave crash, this market can blast to new record highs about as fast as it came down. Well, maybe not quite as fast, but technically the DOW should break to a new record high just one more time. I would expect another zigzag type of a move, and all it needs to do is break higher, by the slimmest of margins.

Of course it can drop like a rock and keep right on heading south as well, but if that is going to happen, it should do it sooner than later.

For a bigger bearish market to take hold, the DJIA has to decline much further before it can no longer recover. To put it bluntly, this 2017 top has been much harder to count out than the other two peaks in 2000 and 2007. I think it is due more to the fact that we are at a Cycle degree top, which makes the other peaks in our past, sequentially lower in degrees and more sensitive. 

You have to remember that the wave 3 peak in mid June, is the tallest peak in all of recorded stock market history, including old British market history as well.  It still amazes me that we are counting little bitty wave patterns at record peaks, trying to figure out when it’s going to get serious with the next set of impending corrections. 

From my Cycle degree perspective, finding a potential 4th wave is important to me as they help to give us a location. They also contain a warning that the next bullish phase will come to an end, followed by a much bigger correction.