Professor’s Comments 3/9/2020
Posted by OMS at March 9th, 2020
As of 5am, the Dow futures are down over 1,300 points.
Because of this, it will be important for the Dow cash to remain above the 28 February low of 24,861, other wise there’s a good possibility that the crash wave of Major Wave 3 down is starting. Trillions of dollars have been lost in the equity markets during the past few weeks. This lost money will soon begin to impact the economy for the foreseeable future. My target for Major Wave 3 down remains near the 21,700-22,200 level. This target is obtained from two technical patters, the first being an Ending Diagonal that started from the December 2018 lows. The second from an even larger Rising Wedge Pattern. The fact that two patterns exist on the chart increases the odds that either one or both targets will be hit if prices fall below 24,861.
BTW, these targets are only for Major Wave 3 down. Once MW3 down completes, there should be a MW4 and then MW5 down. At this point, I have not calculated targets for these Major Waves, but IF 24,861 is broken, the larger pattern suggest significantly lower prices in the months/years ahead.
Protect yourself.
That’s what I’m doing.
h
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments