Dow Jones ElliottWave Analysis: Inflection Area Called The Rally

Hello Traders,

Dow Jones Elliott wave view suggests that the cycle from 08/15/18 (24946) low ended at the peak of 08/29/18 (26186) in red wave 3.

Below from there, it ended the pullback in red wave 4 at 09/11/18 low (25767) and already broke to new highs confirming that the next extension higher has started.

The internals of the red wave 4 pullback unfolded as an Elliott Wave double correction which ended black wave ((w)) at 09/11/18 low (25817), black wave ((x)) pullback at 09/11/18 (26102) and finally black wave ((y)) of red wave 4 at 09/11/18 low (25767).

After breaking red wave 3 peak confirming that the next extension higher has started, it ended the short-term cycle from 09/11/18 low (25767) at the peak of 09/14/18 (26262) in black wave ((i)). Below from there it reached our equal legs extreme (blue box) towards $26061-25963 area, which was the 100%-161.8% Fibonacci extension area of blue wave (a)-(b) where it ended black wave ((ii)) pullback and also where we like to stay long with a risk free position targeting higher targets.

As long as pullbacks stay above 25767 low we expect the index to see more upside. We don’t like the selling.