A few Comments before today’s open 051320
Posted by OMS at May 15th, 2020
The Dow fell hard yesterday, shedding 457 points to 23,765. The decline moved the Market Timing Indicator for the Dow to a Sell Signal. The same timing indicator on the NASDAQ remains Positive. So, it’s still not clear if Major Wave C down has started. There’s a possibility that yesterday’s decline was part of sub-wave c down of wave 2 down within the final 5 wave sequence of Major Wave B up. If this is the case, wave 2 down could fall to the 23,400 level before it completes and wave 3 up begins.
The 23,400 level on the Dow is shaping up as a key support level as is also the neckline of a Head & Shoulders Pattern that started back in mid-April. If this neckline is broken, it will likely mean that Major Wave C down is underway. If 23,400 continues to hold, the Bullish scenario for the Dow to push toward 25,000 remains in place.
Gold (GLD) rose 0.62 cents yesterday to 160.04. However, it failed to break out of the sideways triangle pattern it has been forming for the last 20 trading days. Once GLD moves above 162, a significant rally should begin as suggested by the narrowing Bollinger Bands.
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Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ
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