DJIA E-Mini Intraday Update

 

 

The markets are slowly grinding down in a South Easterly direction. These choppy declines can produce surprise counter rallies where the majority thinks they are going on the next leg up in stocks. When you look at this with a weekly chart, it has barely moved, so it justifies scraping the bottom of the degree list.   I moved the Micro degree down which gave us room for the first set of waves in Submicro degree, still keeping the smallest degree at the Miniscule level. 

I have a one diagonal decline, and due to space limitations I counted it as an impulse. In reality, it’s just another diagonal wave structure. So far in this decline I kept it within 3 degree levels, and the time will come when I have to add 3 more degree levels.  For this stock bubble to have burst, it has to continue its choppy gyrations. It will be a challenge to get close as we really don’t know if we are going to get a flat or a zigzag in Cycle degree.  I favor the flat, but I’m sure the markets will throw something else at us, just to confuse the best wave analyst professionals.  

Wave analysts act like a herd as well,  as it is pretty easy to see all the micro, mini, mini and other wave counts, being counted at the atomic degree level. This is useless wave counting,  if we don’t have a clue what the largest degree may be.  My goal has always been to look for and to confirm the highest realistic degree.  This degree is Cycle degree,  as I spent well over a decade chasing SC and GSC degree.  Many times I have already given descriptions of exactly the wave positions we need to correct the three largest degree levels, many are drawn out as idealized charts and templates. 

Short term we are still seeing a bit of a rally in the markets, but it should eventually trend lower.