|DJIA - 30 Minutes - One set of "five-up"|
First, starting over on the left-hand-side, depending on whether you think the downward wave following the A wave up is a smaller 'a', or 'w' wave (...it is clearly a three-wave sequence...), then the 'b' or 'x' wave, upward to Jan 6 measures precisely 138.2% of the length of that 'a', or 'w', wave. How is that for wave theory accuracy?
And then, the Jan 12th wave downward to B just marginally breaks that 'a' or 'w' wave lower to confirm the flat yesterday morning.
Then, on the opening this morning, that "tsk-tsk" gap I mentioned yesterday (now shown with the black circle) filled straight-away. And, once again, no gaps to the upside (on this chart).
Next, it's hard to argue that we've had five clear waves up (.i through .v), and this is followed by what looks like a bull flag downward, which broke upward at the end of the day, following by a back-test of the bull-flag channel which has held so far.
The downward wave on the Dow measures between 50 - 62%, and is deep enough for a second wave. While we don't know that the second wave downward is finished completely (... it could well be...), wave theory tells us that after 'five waves up' there should at least be five more waves up, and possibly more if the C wave develops as it should into an impulse or diagonal.
Cheers and enjoy the long weekend!