DJIA Elliott Wave Stock Market Analysis – 3rd January, 2012

Elliott Wave chart analysis for the DJIA for 3rd January, 2012. Please click on the charts below to enlarge.

DOW daily 2012

Wave (2) black is seen as an incomplete double zigzag correction with a zigzag for wave W blue joined by a three for wave X blue. Within the last zigzag labeled Y blue waves a and b pink are complete.

Further upwards movement is expected within wave c pink of wave Y blue of wave (2) black.

Movement above 12,328.47 would provide confirmation for this wave count as the alternate daily would then be invalidated.

At 12,761.30 wave c pink would reach equality with wave a pink. Once the fourth wave within wave c pink is complete then we may be able to calculate a more accurate target making use of two different wave degrees.

The trend channel was constructed about wave Y blue by connecting the start of wave a pink to the end of wave b pink and placing a parallel copy at the end of wave a pink. We may see wave c pink finish in the middle of this trend channel or more likely at the upper trend line. The alternate daily wave count presented below sees wave c pink as having completed in the middle of this trend channel.

Movement above 12,876 would invalidate this wave count as wave (2) black may not move beyond the start of wave (1) black.

Movement below 11,735.19 would invalidate this wave count as any second wave correction within wave c pink may not move beyond the start of the first wave.

DOW hourly 2012

This main hourly wave count sees waves (i) and (ii) green within wave c pink as complete.

Wave (iii) green is seen as subdividing into orange degree with wave i orange complete. Wave ii orange is expected to move price lower within the final wave of the zigzag correction labeled C purple.

Wave A purple within wave ii orange is a clear five wave structure and therefore wave ii orange is expected to complete as a zigzag.

At 12,105.96 wave C purple within wave ii orange would reach equality with wave A purple.

At 12,619.91 wave (iii) green would reach 1.618 the length of wave (i) green.

Movement below 11,999.97 would invalidate this wave count as wave ii orange may not move beyond the start of wave i orange.

Alternate Hourly Wave Count

DOW hourly alternate 2012

Edit: this alternate hourly wave count is invalid because wave (iii) green cannot be the shortest wave.

Alternate Daily Wave Count

DOW daily alternate 2012

This alternate daily wave count expects wave (2) black is now complete and that further downwards movement should be expected within wave (3) black.

A ratio within wave (2) black is: wave C pink is 40.86 points shorter than .618 the length of wave A pink.

Once we have a full daily candle below the bottom trend line then it is highly likely that wave (2) black is complete and would increase the confidence in this wave count.

Movement above 12,328.47 would invalidate this wave count as no second wave correction within wave (3) black may move beyond the start of the first wave.

2 thoughts on “DJIA Elliott Wave Stock Market Analysis – 3rd January, 2012

  1. does a subscription include daily wave counts each day or only some days. are there wave counts intraday if needed to notify of a trend reversal.

    1. At this stage Hugo is only doing the Dow once a week for me. I do have plans to increase the regularity of Dow analysis done by Hugo for ElliottWaveStockMarket, but that is a while away at this stage.

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