Dow Future Elliott Wave View: Resuming Higher

The short term Dow Futures (YM_F) Elliott Wave view suggests that the rally from the 6/29 low is unfolding as a a double three Elliott wave structure. Up from 6/29 low (21138), Minor wave W ended at 22132 and pullback to 21790 ended Minor wave X. Rally from there is unfolding as an impulse Elliott wave structure. Above 21790, the sub minute wave i ended at 21884, sub minute wave ii ended at 21815, sub minute wave iii ended at 21988 and sub minute wave iv ended at 21946. Expect the sub minute wave v of (a) to complete soon and thus cycle from the 8/11 low to end. The index should then pullback in Minute wave (b) to correct a cycle from the 8/11 low before resuming higher again. We don’t like selling the proposed pullback and expect buyers to appear once the Minute wave (b) pullback is complete in the 3, 7, or 11 swing provided the pivot at the 21787 low stays intact.

Dow Future 1 Hour Elliott Wave Chart

 

The Double Three is the most important pattern in the new Elliott wave theory and probably the most common pattern in the market these days. The Double three is also known as a 7 swing structure. It is a very reliable pattern that gives traders good opportunity to trade with a well defined invalidation level and target areas. The image below shows what the Elliott Wave Double Three looks like. It has (W), (X), (Y) labels and an internal structure of 3-3-3, which means that all 3 legs has corrective sequences. Each (W) and (Y) is made of 3 waves oscillations & has structure of A, B, C or another W, X, Y of a lesser extent.