Professor’s Comments December 1, 2022

Posted by OMS  at December 1st, 2022

After looking at yesterday’s action, it appears that yesterday’s early low completed Wave ‘D’ down of the Ending Diagonal or Bearish Rising Wedge Pattern on the Dow with the afternoon rally being part or all of wave ‘a’ up of Wave ‘E’ up. If this is the case, once wave ‘a’ up completes, there should be a small pullback for wave ‘b’ of ‘E’ up followed by another small rally to compete the pattern. 

As I said in yesterday’s comments, nothing has really changed with respect to the overall pattern. The Dow still appears to be in the process of completing the five waves of the Ending Diagonal for Wave 2 up.  It’s just taking a bit longer than I originally expected.  Like I always say, Wave 2s have a mind of their own.

Remember, tomorrow (Friday), the BLS will be releasing the November Jobs Report, which could move the market.  So, IF the market continues to rally today, we could see a small pullback tomorrow.  This would be wave ‘b’ down within final wave E’ up. This pullback should then be followed by wave ‘c’ up of final Wave ‘E’ up to complete the pattern.

In other words, I’m now expecting the Dow, and the other indexes, to complete their Wave 2 patterns within the next few days, possibly into early next week.  After that, the market should start heading down as Wave 3 down begins to unfold.

Be patient.

That’s what I’m doing,

h 

Market Signals for

12-01-2022

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