DOW Futures Reach 90% - Weekly

Now we know why we had a recent countable diagonal downward from July to October 2023 on the weekly chart of the Dow futures, below. It was the minute-c, ⓒ-5, wave of the end of a Minor B wave. There is no escaping the 90% measurement and the fact that today the Dow made higher daily and weekly highs while the other indexes did not.

This chart might also clarify that the wave down on the left could have been a diagonal Minor A, down, triangle Minor B, sideways, and impulse Minor C downward to make wave Intermediate (A) per our labels of (A)/(1) to adhere to the Principle of Equivalence. In this case, it winds up being a perfect Fibonacci  C = A relationship between the two waves.

Since October of last year, we have had Minor A impulse, up, sideways truncated Flat for Minor B, and now a Minor C wave, up. The alternate labels shown at the bottom (roughly equally likely at this point) are Primary ① at the 2022 high, Primary ② down at the October 2022 low, and Primary ③, up, to make three legs of a five-leg contracting ending diagonal IF and only IF Primary ③ goes over the all time high. It isn't there yet.

We also now know that the wave to the ⓑ-3 high was not a true diagonal as it's low was not broken in less time than the diagonal took to form. Meanwhile, the wave down to ⓒ-5 was a true diagonal downward (an ending diagonal) because it's high was broken upward in less time than this diagonal took to form.

One of the reasons I post this update with dispatch is to show just how incorrect one can be when they break the rules.

At the moment, all we know is what we know. Could this be an Intermediate wave (B), up? It certainly could be - even if it goes over the high. But, the odds are just about even, or maybe even a little better, that an ending diagonal wave forms to end the Dow's Cycle Vth wave.

All-in-all whippy difficult to trade action.

Have an excellent start to the evening,

TraderJoe