Dow Index ~ the Elliott Wave over the past 124 years...



Looking back 124 years to the beginning of the Dow Jones Industrials we can see that stock prices have traced out five waves and three waves at all degrees to where we are today.

In 1929 the first wave completed from 1896 as "super cycle" wave (i) (blue). The 3 year decline from that high during the great depression formed "super cycle" wave (ii) (blue).

From the 1932 low the market has been tracing out five "cycle" waves (pink) to form "super cycle" wave (iii) (blue) to where we are currently at the February 2020 highs.

The "cycle" wave V (pink) started from the 1974 low after having completed an "expanding triangle" "cycle" wave IV (pink). The "cycle" wave is being sub-divided by five"primary" waves (black) as [1]-[2]-[3]-[4] and [5].

The "primary" wave [3] topped in 2000 and started an 8 year correction for "primary" wave [4] that was sub-divided at the "intermediate" degree (red) labeled (A)-(B)-(C) and bottomed in 2009.

Our blog charts show all of the sub-waves of "primary" wave [5] from 2009 to the current market prices.

This  chart along with our blog charts will show traders why a very important long term market top is in the final stages. Once the "super cycle" wave (iii) is complete we will see the largest bear market in history as "super cycle" wave (iv) begins with price projections back to the fourth wave of the lessor degree (per Elliott rules) which was the "primary" wave [4] low of 2009.

However, we are completing five waves at the "cycle" degree which means that the main lessor degree wave is "cycle" wave IV in 1974.

Will the "super cycle" bear market be able to take prices down that far? The markets have already set the largest down day in history and yesterday the largest rally in history. We aren't surprised because this would be expected as the market finishes the "super cycle" degree formation.

If you need a comparison....look on this chart at what happened at the top of "super cycle" wave (i) in 1929. After 34 years of a market rally the price dropped 90% in just 3 years.

Follow the Trend
and
"Trade Safe"

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