DJIA ~ Dow wave - C thrust from triangle hits a perfect Fib target...
The Dow supports the same wave formation that we showed in the S&P on Friday....the "zig-zag" pattern from the December low to complete wave-D of the larger triangle. This chart shows an interesting price target that was hit on Friday that helps to confirm the triangle scenario. There are several ways to calculate price targets for where the five wave rally (thrust) as wave-[c] out of a triangle could terminate. In this case we use the maximum high and low at the beginning of the triangle...indicated by the small red up and down arrows. The first target for wave-[c] should be a 61.8% relationship to this calculation. Friday's high in the Dow met this exact calculation shown on the chart. This doesn't have to be the exact high but, the fact that traders did sell the market at this price helps to confirm our primary count. The initial decline from the high on Friday can count as a small five wave impulse on the 15 min chart which could be the first clue...