Over the weekend I was working with a student and I showed him some work I had for 'context', and I wanted to show just the INDU version here. There are analogous setups for SPX, RUT, etc.





There is a big 'natural' set using the key bubble bull top, the bear market low, and the last bull top. What significant points! I showed the 1.128 and 1.272 off the last bull, and something else that is pretty basic and obvious, if you remember to do it. I also added a projection on there comparing 'wave 1' and 'wave 5', as I see them. If you do this on the Russell and put on the external retracement off 'wave 4' you get also dead exact overlaps (that is incredibly fascinating to me). If you don't see the overlaps just about dead on, you didn't do it like I did. On the S&P the analogous area is at the division line.

Now, I am not showing any of the downsloping work based on all the action on the way down, or other upsloping work from potentially key trendlines, and so on, just this set framework. You should see most of that other work hits the same areas. The areas look pretty clear to me on all the indices. This might make a 5-wave completion, with a 5-wave sequence in wave 3, not that I put a lot of weight on wave counts. But overall, this is something to watch. A real seeming magnet area across the board. Then we do a big ABCD up, everyone declares the bear totally dead, then we do another big 5-wave CD leg down, for a bigger ABCD? That would be cool.


Chart created on QCharts, courtesy eSignal.

Very cool. I've got a couple of downsloping sets that I am looking at.

Those be the two key sets. So, see the intersections and the key fib areas? Keep in mind the big set is more like a monthly chart, so this is actually a very tight area, and where in what looks like a broad zone here on this 'close up' daily chart it may bottom out (if it does indeed find some kind of a bottom in here) isn't as critical as seeing the general area and then watching price action for further clues. You might want to add on a division line or two on the lower side of that smaller set, as that blends in quite nicely, too, with the rest, if it wants the low end of all this.