Dow closed the week with another new record at 16,221. I am looking forwards to Dow moving above 16,400 level next week, to confirm the mini-wave 3 run-up and hopefully Dow can last another 9 to 10 months..
And if this is going to be the last surge before the bubble burst, an euphoric parabolic run-up may take place to bring Dow to above 20,000 level.
However, if Dow failed to break its upper resistance line to go above 16,400 next week, Dow may complete its wave (ix) with a wedge formation as shown below. It's quite likely that Dow may go to 14,000 level to form its major wave (6).
My focus next week will be on whether Dow can break its upper resistance line.
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2 comments:
FED is cleverly balancing QE tapering with GDP expected growth to avoid adverse impact on DOW.DOW to stay on high may be more likely possibility.
If Dow can break on the upper side, I will have less worry for the next 9 to 10 months until wave (ix) is completed. By then we will have to see whether the bubble has burst or Dow is only undergoing its 15% major wave (6) correction.
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