Here is an updated chart for the Dow Jones Industrials (Dow) from my May 2016 post that predicted a move to the next sequential sine wave in the 5/8 series (5/8 x4, or 20/8), due to the tops at since waves at A & C. This provided a basis to continue a progression that could identify future key pivots – on a monthly basis. As can be seen in the chart below the 20/8 sine wave resistance is a match with the recent record high of 26,616.71 in the Dow.

What is the sine wave progression telling us now?

• A support wave is formed by inverting the 20/8 wave (thick dashed brown) and starting on the 1/4 time point. This wave gives support to the important lows at B & D and therefore may identify support again if the Dow continues to correct off the recent high, or if a new temporary high is reached followed by a correction prior to the time target date of June 2019 (see bullet below).
• Top price levels of each wave are extended to the right (brown horizontal dotted lines), whose intersections with the support wave identify lows at B & D, as well as the reversal month of October 2011 at point Z (small blue arrow).

From these additions, the following can be concluded:

• The next sequential intersection is at point F, which is June 2019 at 21,405.82. From this analysis that would be an anticipated low for a possible 1.5 year correction.
• The 20/8 wave top at 27,328.10 offers a possible higher high, in case the current massive uptrend has some more steam left.
• The next sequential intersection for a major high is August 2022 at 27,328.10.