Market movement since low Friday is a 3-wave with current juncture being wave 4 or a completed abc with down wave ahead. I believe it will resolve to the upside, breakout above 1171.50 in accord with I1.
It is about time to update the longer wave counts. Here is the Nasdaq QQQQ for the past three months. A wave 5 is ahead to complete the move from March, 2009 as ABC upward correction:
Why do you use the Dow rather than a broader index like S&P 500 or wilshire 5000 to trade?
ReplyDeleteHi Charles. The primary reason is the complete absence of public traders and the dominance of big money. These are low-beta, ultra high-volume companies that attract not only large investors here but internationally. Blue-chips, when they diverge from speculative averages, provide clues to future money flows. Even the S&P 500 has a healthy dose of "tech". These companies are heavily influenced by Nasdaq trading which is ipso facto speculative (meaning that lesser companies within Nasdaq provide the trend). More beta with high leverage makes for a fine casino, no?
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