TechnoMeter

Dow Jones Industrial Average (DJIA) has recovered well from the losses stemming from May 17. With DJIA printing above 21,078 late last week, it alters the pattern we were following some. Previously, we were looking for a small dip in price to offer a buying opportunity towards new highs. As we see below, the door is now opened for a slightly larger dip back towards 20,440.



From an Elliott Wave perspective, we have the current wave higher labeled as wave (b). This Elliott Wave model allows for the current wave to continue higher up to 21,471, though it doesn’t have to. Therefore, between now and around 21,471, DJIA is at risk of finishing this shorter term uptrend in favor of a sell off back towards 20,440.


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