Before starting with DJI (daily) in detail, we need to know, that the major Indexes have little correlation among each other right now:
The Dow Transportation Index (DTYO) has finished a wave "4" (2017-05-19) and since then, started a "Extension 5".
The NDX is still in a corrective wave "4" pattern, which could be a ABC or WXY sort of thing.
The SPX (best correlated to DJI) is about or has probably already finished a wave "2" or "4" of a "SubMinuette" degree!
DJI-line-study:
SHORTTERM: The DOW is in a parallel shortterm channel (grey, which started on 2017-04-25). The lower support-line (right below 50EMA could be tested. This would correlate with a Fib. 0,382 (21150) with a timetarget 2017-07-19. In a worst case scenario, the index could even fall to 0,618 (21000 level). This would be below the grey support line, but still above the other support line (dotted dark red line).
MEDIUMTERM: The DOW is in a rising wedge (which started in 2015), right below the upper resistance line (dark red line). The last two weeks of consolidation or sideward-reaction could have been only to gain enough "power" to break this line to the upside in the coming days or weeks. This is at least, what it looks like.
DJI-EW-study:
There are two possible scenarios:
I.: The wave the DOW is about to finish is a wave "4" (sideward reaction). The rules predict, that this correction could stop right below the grey support-line, in most cases at 0,382 21150 and slightly outside the channel. Time frame 2017-07-19.
II.: The DOW is in a wave "2" instead, with the preceding "Minute"-wave 4 (red) finishing at 2017-05-18. In this case, the ongoing correction would be steeper and could lead to 0,618 21000, with a identical time frame. (Bear trap)
Overall, there is still a "Minute"-wave 3 with a probable 1,618 target at 22000, derived from "Minute"-wave 1 and 2 (blue), dating from last year!
So, in all cases, this is not a topping market! The bulls are still on Wallstreet, even there could happen a bear-trap in the coming days.
The Dow Transportation Index (DTYO) has finished a wave "4" (2017-05-19) and since then, started a "Extension 5".
The NDX is still in a corrective wave "4" pattern, which could be a ABC or WXY sort of thing.
The SPX (best correlated to DJI) is about or has probably already finished a wave "2" or "4" of a "SubMinuette" degree!
DJI-line-study:
SHORTTERM: The DOW is in a parallel shortterm channel (grey, which started on 2017-04-25). The lower support-line (right below 50EMA could be tested. This would correlate with a Fib. 0,382 (21150) with a timetarget 2017-07-19. In a worst case scenario, the index could even fall to 0,618 (21000 level). This would be below the grey support line, but still above the other support line (dotted dark red line).
MEDIUMTERM: The DOW is in a rising wedge (which started in 2015), right below the upper resistance line (dark red line). The last two weeks of consolidation or sideward-reaction could have been only to gain enough "power" to break this line to the upside in the coming days or weeks. This is at least, what it looks like.
DJI-EW-study:
There are two possible scenarios:
I.: The wave the DOW is about to finish is a wave "4" (sideward reaction). The rules predict, that this correction could stop right below the grey support-line, in most cases at 0,382 21150 and slightly outside the channel. Time frame 2017-07-19.
II.: The DOW is in a wave "2" instead, with the preceding "Minute"-wave 4 (red) finishing at 2017-05-18. In this case, the ongoing correction would be steeper and could lead to 0,618 21000, with a identical time frame. (Bear trap)
Overall, there is still a "Minute"-wave 3 with a probable 1,618 target at 22000, derived from "Minute"-wave 1 and 2 (blue), dating from last year!
So, in all cases, this is not a topping market! The bulls are still on Wallstreet, even there could happen a bear-trap in the coming days.