Today we wanted to share our “very bullish count” we’ve been tracking for our members for weeks now on the DOW; it is a set of nested 1st and 2nd waves, with the 3rd of a 3rd wave just around the corner. The market has simple not been able to invalidate this count as it has not been able to break below it’s August low (SPX2148 equivalent). Instead the DOW reached our ideal and initial downside target as shown by the gray arrow: c=1.618x a.
This low is right around the DOW’s 50d SMA, as well as its parallel dotted trendline of the symmetrical Elliot Wave. We call that triple support. In addition, at the low the DOW reached our buy zone target as determined by the MFI14: red box. Why? At these low money flow index levels, important bottoms have formed during the current bull market. Moreover in late June after the Brexit low our proprietary A.I. buy/sell indicator gave an ideal buy signal (solid green vertical arrows); and now gave two non-ideal buy signals (dotted green vertical arrows).
Not shown here, but market breadth appears on the verge of turning back positive, and given that some breadth indicators (available to premium members only) are getting very oversold and are now at levels from which during this bull market new price highs have been made, we are optimistically bullish on this market and set our eyes on our initial long term price target as set forth in the prior update: see here.
Re-posted, in part, from our September 3 weekly digest, available to premium members only. Please click here to become a premium member too so you get all this info and more first, and have the edge.