Thursday, 3 June 2010

Elliott wave formation on the DJ

I think I spotted an Elliott wave formation on the Wall Street Daily (DJIA). My initial long was a bit too early, but I added to it on another account at close to the lowest point.
The smaller arrows show when I had another stab as I felt there was a short covering rally occuring
When the index started to fall late in the day was it necessary to absorb the loss of approx 50 (yeah thanks) or could the charts show that such a heavy fall through the 38% and 50% fib levels would inevitably end with an almost 100% fall? Bounces have occured before. Maybe always play the 10% rule? But where do you get back in?
The difficulty now is I think I see the formation everywhere!

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