It’s not a guideline it is a rule: “Wave 2 never moves beyond the start of wave 1”, if the Dow crosses the 12876 level, this count is not valid. A mere 1.22% rise in the Dow from Friday’s close will cancel the rule.
Now, the zigzag and double zigzag guidelines place the length of c equal to that of a, this guideline could be consider already fulfilled since the relationship is 0.96 at Friday’s close, a 1:1 amid a-c will put the end of c at 12761.30.
Looking at closing prices and a big zigzag
My 30 mins. preferred count is still valid, the guideline for a extended fifth wave have the 0.382 of the move within wave 4. If green 5 ended last Friday the 0.382 is at 12468, if it ends at 12761 the golden section is at 12483, also the guideline works for the end of 5 red with the 0.682 part within 4 red for an extended red 3.
According to data at indexarb.com, IBM is the highest weight stock in the Dow Jones with a 11.22% almost double of the nearest follower Chevron (CVX) that holds a 6.36% of the Dow. Following Chevron are Caterpillar (CAT) with 6.29%, MacDonalds (MCD) 6.25%, Exxom (XOM) 5.21% and 3m (MMM) with a 5.10% of the Dow.
IBM jumped 4.43% with big volume on Friday after earnings, stopping what looked like a bearish head and shoulder and taking the price above the ma(50) and also accounting for much of the 0.76% Dow Move.
CVX is set to report next Friday, CAT and MMM are scheduled for Thursday 26, and MCD is reporting next Tuesday 24. Any of those heavyweights are going to have big impact in the Dow price so watch for the action.
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write email@example.com Thanks, Erick