Dow again

dow mrch 14 2018

Here is where we are today, something for everyone it would seem. If you are a bull you see a nice triangle in which the e-leg must stay above the low of the -leg. Then you would expect a thrust up which could be good for another three or four thousand points. The only fly in this ointment is the a-leg. It is best counted as 5-waves, that is an impuls wave 1 down and definitely not as a wave a of a triangle (not possible, not allowed).

The proper count would be a 1-2, 1-2 and now we are in a wave 3 of the first major downleg. This is where things should start to accelerate.

As to the question why now, there are quite a few possibilities. We have Stormy Daniels about to talk, we have Kudlow taking the place of Cohn, we have the Russian situation heating up, we had a Democrat win in Pensylvania, we have the NRA running the country – in short reasons galore but above all we have an market by just about every measure.

The bulls may still be right but break 24,000 and there could be another 20,000 to go.