For all of August, the DOW E-Mini has been dancing around in both directions. Good Luck trying to fit this into a bullish impulse even though a set of 5 waves seems to be finishing.
Yes the DOW has just created a golden cross, but it sure can head back down and execute a death cross! From what I see I have to remain bearish as 2 H&S patterns have also formed.
A strong bullish move would shred the resistance line to the upside. On the bearish side, we eventually would have to see new records lows.
Give it until the end of the month for a new bearish trend to show itself with a wave 3-4-5 in Minor degree still to complete.
Another leg down in the DOW sure could send gold soaring in another leg up. In a sic way the DOW could see 5 waves down in Minor degree while gold might get 5 waves up in Minor degree.
If we were in an Intermediate degree decline, then I think this sideways pattern would take much longer to play out.
Once the DOW crashes below the August 6th low then we will know for sure that this August rally was just another bear market rally. Yes, the decline started out very choppy but they can also smooth out as the trend matures. 21,600 could bring us support but that number may mean nothing once fear starts spreading far and wide.