DJIA Elliott Wave Analysis – 13th February, 2012

Elliott Wave chart analysis for the DJIA for 13th February, 2012. Please click on the charts below to enlarge.

Main Wave Count

DOW monthly 2012

This monthly wave count sees the Dow within a double combination correction at dark yellow degree.

Waves (w) and (x) dark yellow are complete. The second structure labeled (y) dark yellow is therefore in progress.

Within wave (y) dark yellow we expect wave (A) black within wave A maroon of wave a teal green is complete and that more upwards movement is expected within wave C blue within wave (B) black.

DOW daily 2012

This daily wave count looks at the structure within wave (B) black.

Within wave (A) black, ratios within wave A blue are: wave iii pink has no adequate Fibonacci ratio to wave i pink and wave v pink is 12.23 points shorter than 1.618 the length of wave i pink.

Within the zigzag of wave (B) black waves A and B blue are complete and a five wave impulse is expected for wave C blue. Within wave C blue waves i and ii pink are complete with wave iii pink subdividing into green degree with waves (i) through (iv) green likely complete.

Within wave (B) black, there is no adequate Fibonacci ratio for wave (iii) green with wave (i) green within wave iii pink of wave C blue. This makes it more likely that we may see a Fibonacci ratio for wave (v) green with either of waves (i) or (iii) green.

Upwards movement is expected to complete wave iii pink before a larger correction for wave iv pink which is likely to see price move sideways, before the final impulse to complete wave C blue and wave (B) black.

At 13,231.19 wave (v) green would reach equality with wave (iii) green and at 13,395.44 wave iii pink would reach 1.618 the length of wave i pink. This provides us with a high probability target zone where we may see wave iii pink complete.

Movement below 12,257.67 would invalidate this wave count as wave iv pink may not move into the price territory of wave i pink.

DOW hourly 2012

This main hourly wave count expects further upwards movement to complete wave (v) green which would complete wave iii pink.

Within wave iii pink waves (i) through (iv) green are seen as complete.

Ratios within wave (v) green are:   wave iii orange has no adequate Fibonacci ratio to wave i orange.  Within wave iii orange wave 3 purple is 10.36 points longer than wave 1 purple and wave 5 purple has no adequate Fibonacci ratio to either of waves 1 or 3 purple.  There are no adequate Fibonacci ratios within wave A purple of wave iv orange for waves (1), (3) and (5) aqua.

Wave (v) green is seen as subdividing into orange degree with waves i through iii orange complete. Short term downwards movement is expected within wave iv orange. The downwards movement labeled A purple within wave iv orange so far has a clear five wave structure and we therefore expect wave iv orange is very likely incomplete.

Movement above 12,924.40 would confirm this wave count as the alternate hourly would then be invalidated.

Movement below 12,719.87 would invalidate this wave count as wave iv orange may not move into the price territory of wave i orange.

Alternate Hourly Wave Count

DOW hourly alternate 2012

This alternate hourly wave count expects that wave (iv) green within wave iii pink is still incomplete and unfolding as an expanded flat correction.

Within wave (iv) green waves a and b orange are expected to be complete with wave b orange having unfolded as a double zigzag correction.

Movement below 12,719.87 would confirm this wave count as the main hourly would then be invalidated.

At 12,419.21 wave c orange within wave (iv) green would reach 1.618 the length of wave a orange.

Movement above 12,924.40 would invalidate this wave count as no second wave correction within wave c orange may move beyond the start of the first wave.

Movement below 12,328.32 would invalidate this wave count as wave (iv) green may not move into the price territory of wave (i) green.