SUMMER OFFFERS
July 11, 2013
SPX Elliott wave analysis
July 16, 2013

DOW continues to trade higher as a confirmation that bulls are in control and the trend is in their hands right now. Support levels are not even tested and prices continue higher breaking above resistance levels and near the all time highs, ready to make new highs. DOW is moving up in an pattern and is expected to reach near 15700-900 area during this week.

dow60m

DOW could have finished wave 3 up from 14858 and might make a small 2 day pull back towards 15250 before making the final move towards the new all time high. A sell signal for the start of this potential short-term correction will be if prices break below 15400. If prices break that support, I expect the correction to deep steep towards 15250.

DOWDAILYpitchforks

Our longer chart we post above, is here to show the significance of the recent lows made in June. Breaking the pitchfork support currently at 15000 will put both the intermediate and longer term trend in danger, with most probable first target the 14300 price level. We are cautiously bullish but any sign of weakness should not be overlooked as we believe that we are near the completion of the move that started at 12500.

As always, thank you for taking the time to catch up on my thinking.

impulse-wave-rules

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.