[DJIA] update

At the backlink we had the model below which clearly warned of a possible owl.




Current snapshot shows that this evaluation of the model was exactly correct, even to the detail that the right ear needed just a bit more height before falling off the cliff. 




OK so what's next.  As usual, that mainly depends on what just happened.  Unlike some people who try to tell me that you can't use past chart events to gain insight into future events, I maintain that it is the ONLY POSSIBLE way to have any chance at doing this at all.  Amazing how conventional "wisdom" can be so far disconnected from the facts.  The herd follows group think even while being slapped about the head with tons of to the contrary.

So now here I'm going way out on a limb with the zoom in count below.  This is a highly unusual count and in fact EWI has already given up on this being a bearish setup.  They said in so many words that the recent bounce was just too high to be wave blue 4.  But I still think it is and mainly for one reason: CWT.  That's right, blue 3 below is actually a falling wedge. I think that means it is a 3.  So we will get to have a really good test here of CWT.  Something that does not work all the time is not nearly as useful as something you can count on and I'm not here for pride, I'm here for the money.  So if something doesn't work or doesn't always work I want to be the first to admit it.

What will be just as interesting is to know what happens when the EW is presented with two conflicting guidelines.  In the case below, wave blue 5 should be lower than wave blue 3.  But also when wave 3 is extended (and it is in this case) 5 should equal the length of 1.  But 1 was short and 4 was a big bounce according to this model and so 5 cannot both be the same length as 1 AND make a lower low.  So I think the former will win out per the red model below but if it doesn't then blue path should be taken.  I think this is going to threaten to do an inverted H+S breakout but instead it will likely break down.  I seriously might be the only person in the whole world who is modeling it like this so take that into account if using these charts for gambling purposes.