close icon

Dow above 17 000 again, but…

The Dow Jones Industrial Average reached above 17 000 today, recovering from the 900-point decline, which ended on 8th August. If you have been following our Indices section, you may have come across some of our articles about DJIA.
dow jones 17 000

Recommended reading: Dow Jones and the extreme bullishness

In the suggested material you can see that we were expecting that recent sell-off, because sooner or later, there should have been a fourth wave of that ending diagonal. Then, we prepared you for Dow Jones’ present recovery, since we were expecting wave 5 to the upside. Now let’s see how the larger pattern looks like.
dow jones 17000 update
And this is where things get interesting. According to The Elliott Wave Principle, after every five waves there should be a three-wave retracement in the opposite direction. But this is more than an impulse – this is a fifth wave ending diagonal of a larger sequence.

Recommended reading: Dow Jones not as healthy as it seems

According to this count, bulls are running out of power. Another new high should be expected, probably around 17 300, but then the bears should take control of the situation. The minimum downside target lies at 15 340, but Dow’s loss could be much greater.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

DXY Bulls Should Worry as Bearish Evidence Abounds

The bulls have been in control of DXY during most of 2018 and gradually conquered more land in the first months of 2019, as well. The USD index recovered from its February 2018 low of 88.25 to as high as 98.33 last month. The bulls can really be proud with the total gain of over…

Read More »

NASDAQ Bulls’ Resiliency has its Limitations

The NASDAQ 100 index closed at a new all-time high of 7826 last week, powered by strong Q1 earnings reports by Amazon and Microsoft, among others. The index is up by 650% from its 2009 low and by 884% since the bottom of the dot-com crash in October 2002. Looking at than phenomenal growth, one…

Read More »

Nifty 50 to Fall Below 10 000 Level Again?

It has been almost five months since our last update on the Indian Nifty 50 index. On September 25th, the benchmark was trading around 11 000, following a pullback from the all-time high of 11 760. Still, the Elliott Wave analysis below suggested it was too early to buy the dip. The daily chart of…

Read More »

A Special Letter about the State of the Stock Market

Dear Fellow Elliotticians Most major stock markets have been in a bull market for almost a decade. Unfortunately, after last week’s selloff it is now evident that this bull market is over. The S&P 500 is down 17.8% from its all-time high reached three months ago, despite a still strong economy and relatively low interest…

Read More »

SPX Was Recovering… And Then it Wasn’t

The S&P 500 fell to an intraday low of 2583 yesterday, bringing its total decline to 12.1% from the top at 2941 in September. In Wall Street’s dictionary, a pullback of more than 10% is officially a correction and many are already worried about the big bear market ahead. On the other hand, it was…

Read More »

S&P 500 Rallying Sharply, but Not Unexpectedly

S&P 500 bulls had a terrible October. The index was down 11% at one point, but managed to minimize the damage and finished the month down 7.3%. November, on the other hand, is looking a lot better, following a recovery of almost 100 points in the first seven days. President Trump’s reported request for a…

Read More »

DJ New Zealand Index Falling Off a Cliff

October brought a real bloodbath to stock markets around the world. The Dow Jones Industrial Average and the S&P 500 just turned negative for the year and equities in Japan, China and Germany are also falling in sympathy. While leading indices are plunging it’s no wonder that other countries’ benchmarks are suffering as well. The…

Read More »

More analyses