Fascinating Elliott Wave Pattern – Part Two

Today 02/14/23 the Dow Jones Industrial Average (DJI) made an early session high at 34,331.47 then decline for about 90 -minutes bottoming at 33,824.45. This could just be a small inconsequential drop.  However  viewed from an Elliott wave perspective it could be the completion of a pattern that began on 01/05/22.

The daily DJI chart courtesy of Trading View illustrates the action subsequent to the all-time high made in early January 2022.

The 02/08/23 blog “Fascinating Elliott Wave Pattern” noted that an Elliott – nine wave – Horizontal Triangle could be developing from the DJI high made on 01/05/22.  Since 02/08/23 the DJI has meandered sideways possibly completing the multi – month Horizontal Triangle.

A subtle clue comes from the series of declining tops 01/13/23 to 02/14/23.

This particular presumed Horizontal Triangle is a contracting type with each successive top lower than the prior peak.

The final three tops are as follows: Wave (D) 34,342.32

                                                                Wave (F) 34,334.70

                                                                Wave (H) 34,331.47   

The decrease is tiny yet very important, markets remember their price structure.  A movement above a prior top would have invalided the pattern.  The DJI appears to be whispering to us – Horizontal Triangle.

If within the next few trading days, the DJI moves above the high made on 12/13/22- wave (B) at 34,712.28  it could confirm  completion of a thirteen-month Horizontal Triangle.

If it holds, the DJI low made on 02/14/23 at 33,824.45 could be the most important bottom for U.S stocks in 2023.


Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: