Thursday, March 26, 2015

[DJIA update]

Since the previous post, the DJIA has begun to show real weakness.  So I am abandoning the rising wedge throwover model in favor of my original count which is updated below.  It is now clear that wave 1 down tested the lower rail, wave 2 back up tested the center tine from below and now wave 3 or C down is smashing the lower rail.  Dow futures are down 300 right now which, if it follows through into the trading day, will result in a gap down below the lower rail as shown.  This action supports a buy the dip strategy on UVXY.  This top should be a pretty significant one and you can see that it has now resulted in a DDT here.

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