Trying to find a decent wave count has been a challenge, to say the least, and I don’t see it getting any better. At 26,700 the DJIA is getting near some major resistance, and if the markets have more bullish moves in them, then they could break out to new record highs again.
In the post, I looked for a potential triangle with a very deep “E” wave which still looks like a zigzag to me. Any zigzag has very good odds that it can get completely retraced, which our present rally is just short of doing.
Last month saw a corrective drop (3 waves) followed by another 3 wave set which can be a small expanded pattern, which doesn’t fit into an “E” wave at this time.
The Gold/DJIA ratio is as expensive as it ever has been, hitting a price brick wall of 20.48:1, from an extreme of 21:1, established in August 2018.
An extreme expensive Gold/DJIA ratio, a triple top, and an inverse wedge or megaphone keep me looking for a bearish move, not some new bullish leg still destined to go to the moon.
If this wave count, lasts all of April I will be surprised as this market sure seems it has no rudder to help stear it.
A 3 month bull market needs a healthy correction or it sure is due one as the March correction isn’t big enough to do it.