The Dow Jones Industrial Average (DJI) could soon complete and an Elliott wave pattern that began in October 2022.
The weekly DJI chart courtesy of Trading View illustrates the long – term action.
The DJI could be in the final part of an extended Elliott Impulse wave that began in October 2022. For stocks the longest and most dynamic portion of an extended Impulse pattern occurs in the third of a third wave. The smooth October 2023 to March 2024 is exactly what to expect for a third of a third wave. This movement also happened with the S&P 500 (SPX) which was illustrated on this websites 11/09/24 blog.
The daily DJI chart focuses on what’s happened since May of 2024.
The presumed Intermediate wave (5) is also an extended Impulse wave. In this instance the third of a third wave – August to October 2024 has a clear five – wave subdivision.
The DJI is only .33% away from making a new all-time high. The SPX is .70% below its all-time high and the Nasdaq Composite is 1.70% away from a new high.
If the DJI makes a new high unconfirmed by the other two main U.S. stock indices it could be an important sell signal.
Thursday the 28th is the U.S. Thanksgiving day holiday and the cash markets will be closed. Friday the 29th will be a partial trading day. If any of the main U.S. stock indices can make a new high it could happen on Monday the 25th or Tuesday the 26th.
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