Here is a chart of the DOW. As with the Russell in the last post, we need to decide what today’s setback means. This chart has some things in common with the last one, but other things, not so much❗️Like the Russell, the MACD of the DOW is rolling over for a second time here. That generally means a more substantial setback is in the works. Here too, today’s loss in the DOW is bigger than what we have seen for some time, making it seem something more substantial is brewing.
For a while now, we have been waiting for a setback that is bigger, wider, and nastier than the one marked between the blue lines I have penned in this chart. The chief question here is whether the 5 Wave pattern up from the October lows is finished or whether we just started the Wave 4 setback of that pattern. If so, the gyrations for Wave 4 would last about 3 weeks and then there would be a run up to a new peak to finish the pattern.
The only way to know for sure that the 5 Wave pattern is complete is for the DOW to back down through that upper blue line a bit under the 27,200 level.