This DJTA provides yet another look at the markets and the transportation industries. Since this is more like a “First Look” at this index I’m sure future adjustments will have to be made due to the fact that a Minor degree move at this time could be out by one degree.
I left the Primary degree 5th wave uncapped due to lack of space. Leaving any 5th wave uncapped means that wave analysts have no clue where they really are, or that they quit trying to decipher the next higher degree.
I don’t know where we really are as well, because it takes years babysitting and maintaining any wave count before we can get the courage to trade it.
If the bigger bear market is still coming then this index will have no choice but to register a new record low in 2019. In order for that to happen a complete retracement of all 2009 gains must happen.
I do not have a Gold/DJTA ratio database set-up but we have two that will give us an idea of how cheap or expensive the DJTA is when compared to US dollar-priced gold.
Today this ratio sits at 7.82:1 while at the 2009 bottom low this ratio was about 2.27:1. We want to see this ratio to compress making the DJTA index cheaper. We may never see the Gold/DJTA ratio of 2.27:1 again, but we may see 4:1.