DJI - Ending diagonal could be close to completion

DJI - Ending diagonal close to completion

DJI - Impulsive rally from 1932 could be close to completion

DJI - Ending diagonal close to completion 

While the S&P 500 hasn't made a new all-time high yet, the DJI has set a new all-time high after the Trump election victory. This new all-time is very close to completing an ending diagonal that has been developing since the August 15,370 corrective low.

The high has been seen at 18,873, but after a minor consolidation one more high just above this high is expected to complete wave v and turn prices strongly lower. The first downside target to look for is the origin of the ending diagonal at 15,370, but as the entire rally from 2009 and possibly even back from 1932 is near completion, we should be looking for a serious correction unfolding.  

DJI - Important long term time-window reached

DJI - Important long term time-window reached

DJI important long term time-window reached 

The month of October 2014 is where the rally from July 1932 low at 40.56 has taken 987 months. 987 is a Fibonacci number (311+610) and this could prove to be a most important time-window. I think we saw a top at 17,350 and wave E of the expanding triangle is unfolding for a strong decline towards 5,700 in super cucle wave [IV].

You might argue that the top was found at 986 months and not 987, but time-windows like this should always be 987 +/- 1, so I will still argue that we have hit a potential long term important time-window perfectly.

We still can't confirm an important top being in place, but a break below 16,937 will be the first indication of an important top being in place, while a break below the ending diagonal support-line near 16,650 is needed to confirm the top for a decline to the origin of the ending diagonal at 14,719 (see the chart below).

DJI - Long term time-window reached 

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Felipe
2014-05-26
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JT
2014-06-23
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Thomas
2014-08-11
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