DOW update: are price and time related?

Since the ATH made in May 2015 and the first low made in August 2015, we’ve been tracking a 34-day trading interval on the DOW (blue vertical lines) We the noticed then in November 2015 that there was a 2nd 34-day trading interval (green vertical lines). Cont’d below.

Figure 1: price and time are related through trendlines and 34 day trading intervals. Strong support at 17100. Between 18100 and 17100 is noise.

dow time fib

In addition, the November 2015 high was limited due to the red descending trend line. Moving forward we observed that in January of this year the market bottomed almost exactly 5 x 34 trading days after the May 2015 top: blue interval. Note both 5 and 34 are Fibonacci numbers.

As if that wasn’t enough, then the February low was only 1 day prior to 2 x 34 trading days: green interval. Coincidence? Most likely not, as we now also have a top 34 trading days later: at the 3 x 34 trading days green interval.  Note, 2 and 3 are also Fibonacci numbers 🙂

Lastly, again price was rejected on Monday at the red trend line. Hence, we have several very important tops and bottoms that are related to each other using Fibonacci multiples of 34. In conclusion: the price tops in November and April are both related in price (trend line) and in time; and thus likely (very) significant.

The next 34 day interval is late April (blue line at very right of chart). We expect it to be another important date for a possible larger turn, although the 3rd and 6th x interval (October 2015 and March 2016) were turning points but not as strong.

 

As you notice, Intelligent Investing tracks many lines of evidence to determine the market’s next big move, Elliot Wave, S/R, TIs and TAs are several of them. Holistic objective analysis allows us to be on the right side of the market more often than not, without any preconceived notion or opinion. We use just the facts. Just like we did here! Do you want to be on the right side too? Of course! Then please join us here.

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