Intraday Mini DJIA Update

For now I’m calling this a “truncated” “C” wave, which in reality can be part of a running zigzag. If it’s not, I know I will have to adjust my wave counts to include or exclude this secondary top. The Nasdaq has already pushed lower so I see no reason why the DJIA will not do the same.  I’m going to keep my updates shorter, but still want to cover the US dollar, Gold and oil.  The Gold ratios seem like many of them have been hitting a brick wall.  At 19:1 the Gold/DJIA ratio is about as expensive as we can get

This means it takes 19 gold ounces to buy one unit of the DOW from a record of 21:1 which is the highest that I have calculated. This ratio should compress in the years ahead until it no longer takes so many gold ounces to buy one unit of the DJIA.

For those traders that are looking for that mysterious “Support price”,  have to ask, “support for what?”  Support big enough to push the DJIA to 34,000, or just temporary support in an ongoing bear market?  By this time sell stops are piling up below present prices so any new downside will start to trigger them as well.

Yesterdays dark pattern in the chart looks like it was computer generated as the DJIA wasn’t the only futures contract where this happened. Among the 5 indices I cover, two of them are very different, so this will provide some unique wave counting challenges down the road. This has all happened before and only time can tell us if the bearish phase is going to carry on.  The start of solar cycle #25 will destroy all bearish wave counts, opinions and forecasts so I consider following the sun cycles extremely important. The sun cycles are responsible for the business cycle, as it sure was not the government that saved the markets in 2009, it was the start of solar cycle #24 that killed all the bears.

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