Monday, May 19, 2014

SELL IN MAY AND GO AWAY

Hi Friends,

As mentioned in my previous post DJIA seems to be in Expanding Pattern. The Rally from 2009 Lows looks to be a Corrective Rally and not a Directional move or Impulse.
DJIA
Ending Diagonal from the Low of Oct 2013 seems to be complete near 16700, which also marks for a Triple Top. Prior to the Diagonal, DJIA corrected in a Triangle; which also indicates that the move from Oct 2013 Low is the Final Move in this sequence.
DJIA
With this Ending Diagonal the second Zigzag from Oct 2011 Low looks complete. And also the Double Zigzag from low of March 2009 looks complete near 16700 with this Ending Diagonal. The Rally from March 2009 Low seems to be Expanded Flat 'B' Wave. Next leg in 'C' of Flat could take DJIA to 15 Year New Low.
DJIA
Though Currently DJIA is at All Time Highs, the Rally looks like a clear Zigzag Corrective Pattern; as against the Traditional concept of New High being in Bull Market. On a Medium Term Time Frame though it can be Termed as Bull Case, on a Longer Time Frame it's just a Sideways Bear Market. Such Patterns have occurred in the Past during the Sideways Bear Market of 1960-80.


Thanks & Regards,

Harsh Dixit.

5 comments:

vicsilver said...

You seem to be looking at the chart upside down EW projects new highs 2000+ on SPX wave 3 is expanding.

Anonymous said...

Dear Harsh, I am a keen follower of your blog.
If Dow Jones is going to crash like this, it could be lead to a devastating effect even on Indian stock market, and that would imply sub 4000 levels in Nifty...Am I correct?

kkandru said...

Harsh,
Based on technicals , can we say SPX and all other indices due for a big correction in on-going uptrend?

Lately NDX and RUT started moving back up from 200SMA where SPX has never touched 200SMA . Does it give any clue about market direction?

Please comment.
Thx

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