The rally off the July 10 low is unfolding in 5 waves similar to the 5 wave rally that unfolded off the June 25 low (see 50-min chart). The behavioral models on the 50-min chart say this 5th wave will finish on Thursday or Friday between 17,144-17,188.
Guest Post by John Bougearel
The daily chart shows an active 46-day cycle from the Dec 31 high. The next 46-day cycle is Friday July 18. From an Elliott Wave perspective, the Dow Jones set a Wave 4 low in October 2013. If the July high is the 5th wave of some larger degree of Wave 3, then a larger degree Wave 4 should retest the Oct 2013 lesser degree Wave 4 low, and bottom around there.
A retest of the October low at 14,719 constitutes a 14% correction from peak to anticipated trough over the next 1-3 months. Most of the correction should be priced in 4-6 weeks from the peak date. Most likely 4 wks.... While you may be vacationing this summer, keep an eye on the markets, as things sure appear ripe for heating up.
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