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Last week’s analysis for the Dow expected choppy overlapping downwards movement for the week. This is not what happened. Price moved higher.

The wave count remains the same with the exception of the final upwards wave within the structure on the daily chart. I have moved it down one degree.

Click on the charts below to enlarge.

DJIA daily 2013

Within primary wave Y intermediate waves (A) and (B) are complete. Within intermediate wave (C) minor waves 1, 2 and 3 are complete.

Minor wave 3 is incomplete.

Within minor wave 3 minute wave iii has no Fibonacci ratio to minute wave i. At 14,658 minute wave v would be 1.618 the length of minute wave i.

When minute wave v completes minor wave 3 then minor wave 4 should follow. It should be choppy overlapping and shallow, a sideways movement. It may last one to three weeks or so.

Minor wave 4 may not move into minor wave 1 price territory. This wave count is invalidated with movement below 13,661.87.

I have drawn a best fit parallel channel about minor wave 3. The first trend line is drawn from the lows of minute waves ii to iv, then a parallel copy is placed upon the high of minuette wave (iii) within minute wave iii. Price may find some resistance at the upper end of this channel.

DJIA hourly 2013

Last analysis saw the high labeled here minuette wave (i) as the end of minute wave v. By moving that labeling from last week’s chart down one degree this is now only minuette wave (i) within minute wave v.

Within minute wave v of minor wave iii subminuette waves (i) and (ii) are complete. Subminuette wave (iii) is nearly complete. At 14,528 minuette wave (iii) would reach 1.618 the length of minuette wave (i). At 14,493 subminuette wave v would reach equality in length with subminuette wave iii. This gives us a 35 point target zone.

When minuette wave (iii) is complete then a small fourth wave correction lasting a few hours to one or two sessions should unfold. It may not move back into minuette wave (i) price territory. This wave count is invalidated with movement below 14,149.15.