Elliott Wave on the DOW Ending Diagonal Pattern, Short term Forecast

By: Dan_Stinson

Many investors are confused with the choppy action on the DOW, so we have provided a chart to illustrate our forecast on the expected price action. 

This corrective action is an ending diagonal pattern which is a terminal pattern. We should see further upside towards the recent highs with a a sharp decline to at least the starting point of the ED pattern. We will likely see a brief rally at this level before further downside.

DOW

Once this pattern completes we are expecting a major reversal with significant downside to follow. This will be end of the current wave up with two possibilities on the downside targets. Once the reversal begins we should have more insight on which target area will play out.

We also have been following longer term Ending Diagonal patterns for the CAD and and Crude which are also close to completion.

These charts are only a guide so that you can follow the action and watch for the expected outcome. The action could play out exactly as illustrated or it may need minor adjustments as we follow it through.

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