close icon

Dow bulls, you better watch out

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.
dow jones 6.8.14
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.
dow jones ia result 27.8.14.
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…”



Stay informed with our newsletter

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

Privacy policy
You may also like:

Elliott Wave Setup Sends S&P 500 12% Higher

As demonstrated in our previous article about the S&P 500, the stock market started climbing while the economy looked the weakest. Then, as the markets kept rising, a new conundrum occurred. How to explain the extremely wide disconnect between the stock market and the economy? GDP forecasts for Q2 are all over the map, ranging…

Read More »

Insurance ETF Nearly Halves As COVID-19 Takes Toll

Maybe only with the exception of grocery stores, one can hardly find a stock not suffering from the COVID-19 disaster. Insurance companies were not spared either, so it is no surprise that the SPDR Insurance ETF (KIE) crashed, as well. This ETF, which ranks Progressive and Brown & Brown among its top holdings, lost 46.1%…

Read More »

Another Nightmarish Week, Another Illogical S&P Surge

As COVID-19 spreads across the U.S., the economy is teetering on the verge of collapse. Initial jobless claims came in at 6.6 million yesterday, bringing the three-week tally to nearly 17 million. The unemployment rate is estimated to have already surpassed its 2008-2009 recession level. Economists at Goldman Sachs, Morgan Stanley and the IMF predict…

Read More »

S&P 500 Elliott Wave Analysis Giveaway

The S&P 500 crashed by as much as 35% in just one month. And while the coronavirus outbreak was totally unpredictable, the crash it caused made perfect sense. Elliott Wave is our favorite method of analysis, but as the market kept rising we decided to back it up with fundamental data. The result was a…

Read More »

S&P 500, Against All Logic, Re-Enters Bull Market

The coronavirus pandemic forced the global economy to grind to a halt. Major U.S. stock market indices made their fastest plunge into bear market in history. In less than two months, DJIA and the S&P 500 lost 38.4% and 35.4%, respectively. “The virus is just starting to spread in the United States, the market is…

Read More »

Dow Jones Transports Ready for a Rebound?

The coronavirus pandemic is wreaking havoc on the global economy. Governments are closing malls, restaurants and literally all kinds of social gathering places, and even putting entire cities on lockdown. In the meantime, stock market indices are in free fall. The S&P 500 is down 28.7% YTD and the Dow Jones Industrials lost 35.2% since…

Read More »

Three Years Ahead of the COVID-19 Airlines Disaster

As the coronavirus pandemic rages on, governments are taking measures to restrict unnecessary travel and mass gatherings. The airlines sector is probably the one being hit the hardest by the restrictions. The high fixed costs and huge debt loads of the airlines make them extremely vulnerable to economic downturns. With international and domestic travel on…

Read More »

More analyses