Dow Follow-Up (2)

In a further follow-up to the May 18th post (see post at this LINK), now some two months later, the market continues to take its time to complete this pattern. Now at 139 two-weekly bars, the Elliott Wave Oscillator's (EWO or AO) fourth wave signature, dipping below the the zero line - which is not always required, but did happen this time - is apparent. So too, can be seen the initialization of the fifth wave up bars in the oscillator. The EMA-34 can be seen to be winding through each numbered wave for good form and balance.

DOW (YM) Futures - 2 Weekly - Likely Diagonal

The pattern could take a while yet, especially if the next Minor B wave becomes a triangle. The pattern is trying to put you to sleep and make it difficult to trade at the same time. And, it may be waiting for some news to make you think there is a reason for the decline - whenever it comes. And, yes, the Minor A wave can go a bit higher if it wants.

Is it possible for a pattern like this to fail? It definitely is. But, as of yet, there is not real good evidence of such. And based on the lengths of the prior waves, we are trying diligently not to rush the count and would like to see if the full A,B,C zigzag develops.

Have an excellent rest of the weekend.

TraderJoe