It was 6th August, when we published an article, called “Dow Jones could resume uptrend”. The Elliott Wave Principle suggested, that the strong decline from 17 145 may be over soon. The chart below will show you how the Dow Jones Industrial Average looked like, when that forecast was made.
On the chart you can see that the sell-off is in three waves, labeled A-B-C. According to the theory, three-wave movements do not represent the direction of the larger trend – they are only intervening corrective price swings. This brought us to the conclusion, that sooner or later the uptrend should resume and the whole decline compensated. The next chart can give you an update of the situation.
As visible, the Dow bottomed around 16 260 and then rocketed almost in a straight line to the upside. Yesterday, on 26th August, 20 days after our forecast, DJIA reached as high as 17 152, thus fulfilling the new-top requirement. Ironically, this new high probably brings more bad than good news for the bulls. If you want to find out why, read the recommended material below.
Recommended reading: “Dow above 17 000 again, but…”
