Recent blogs on this website illustrated the Dow Jones Industrial Average (DJI) could make an important top on 09/03/24. It now appears an important top may have been made on 08/30/24.
The DJI 5 – minute chart courtesy of Trading View updates the action.
From the 08/22/24 bottom the DJI appeared to be forming an Elliott wave – Ending Diagonal Triangle (EDT). Usually in this wave pattern there’s a throw over of the trendline connecting the termination points of the first and third waves. In this EDT the fifth wave terminated below the rising trendline.
The DJI 08/30/24 peak implies most of the U.S. stock market may have made a major top.
There’s a good chance for a sharp decline into October 2024.
The Russell 2000 (RUT) has continued to lag behind the three main U.S. stock indices and is likely to lead the way down in the next bear phase.
At the open of the Rusell 2000 – 09/04/24 session short 100% Rusell 2000 non- leveraged related funds.
Use a stop for 50% of the position on a move above RUT 2,225.
Use a stop for the rest of the position on a move above RUT 2,250.
Four Dimension Trading 