Goldtent TA Paradise

Dow – Wolfe Wave in Play

1. Fullgoldcrown says:

   June 25, 2016 - 4:38 pm at 4:38 pm

   I have see a lot of Wolfe Waves presented here

   BUT …The classic Wolfe wave has point 5 breaking out past the line from 1 to 3…then it reverses

   http://www.investopedia.com/terms/w/wolfewave.asp

   So this would be Classic IF we go down a few points and thru the line first…Monday ?

   • Mark says:

     June 25, 2016 - 4:59 pm at 4:59 pm

     point 5 close is lower than point 3, but yes, it would be even more textbook if it dropped slightly lower first but you have the lower red line support plus the EMA too as support so we may not see much lower before going up….an intraday move lower first on Monday would make the most sense…I agree. My point is that anyone calling for S&P 1600 from here is nuts….this looks way more likely to make new highs first.

2. Jim says:

   June 25, 2016 - 5:13 pm at 5:13 pm

   Cogent argument. Plus, I believe when the carnage was worse overnight, ES hit Avi’s Wave 2 box then bounced. Wave 3 to the upside would be next. Hope Avi comments on this.

   https://www.elliottwavetrader.net/marketupdate/Cooperating-so-far-201606402891860.html

3. Plunger says:

   June 25, 2016 - 7:10 pm at 7:10 pm

   OK to further the discussion then… A higher DOW is not a bet I would make with an active DOW Theory Primary trend still in the bear camp. Until that changes I stay out of the general stock market. Risk reward favors staying out for my trading style