DJIA Intraday Gyrations Update

The indices I cover make 3 month jumps, so when the March contracts finish,  I have to jump to June 2018 contracts. This chart is the first I will post in the new June contracts. (YMM18). Trading is a bit thin with this June month, but it should pick up in another two weeks.

I’m keeping my wave counts that would work for a Cycle degree zigzag correction. If this is not true, then eventually this wave count will get trashed, but it would also eliminate 2 out of three possible Cycle degree corrections. Any 1-2-3 declining wave count can be identical to any A-B-C zigzag, so until we get to the “C”or “3” wave count I can use my “B”wave top. The February 9th down spike you see is an erroneous spike, because it disappears with line type settings.

What gets me is that the DJIA secondary bottom of February looks truncated, which I have a problem with. It looks worse when I switch into line type settings.  These erroneous spikes, seemed to be computer generated due to the fact they happen so fast.

The rally is still going as I post and I would like to see that open gap closed before these markets resume any downside. All of my March contracts all registered Gaps, so it’s not an isolated event. (The Gary Cohon Dip) It would be fantastic if the gap ended up being closed, but still short of breaking out to another higher high. Trade war fears are not going to go away as they are part of the changing  fundamentals. Trump has made it pretty clear as he was always talking about tariffs and duties, so we should not be surprised at what is happening now.

The EU has threatened retalator attacks on US exports that are targeted at president Trumps heartland voter support. That is a very direct attack on Trump supporters as their jobs woud be on the line.  Fundamentals keep the masses entertained, but in the end if a big Cycle degree bear market is coming, it matters little what fundamental reasoning they use. Fundamentals will change like the wind and it will drive you nuts trying to make decisions based on fundamentals. In January 2018 the herd was extremely bullish as they bought into this “New Era” hype, and now two months later we hear lots of bearish news. When forecasting a price crash, before it happens, we would also be forecasting that fundamentals will change.

The idea that we always have to remind readers that markets never go down in a straight line is ridiculous, as that would only apply to investors that have never seen a financial chart before.