Dow Futures: Extending Higher

Daud Bhatti

Short term YM_F (Dow E-Mini Future) Elliott Wave view suggests the rally from 6/29 low is unfolding as a double three Elliott wave structure and ended with Minor wave W at 21628. Down from there, Minor wave X pullback unfolded as a running Elliott Wave flat. Minute wave ((a)) ended at 21457, Minute wave ((b)) ended at 21624, and Minute wave ((c)) of X ended at 21446. Index has since made a new high suggesting the next leg higher has started. Up from 21444 low, Minutte wave (w) ended at 21734 and Minutte wave (x) pullback ended at 21632. Near term, Index is pulling back in Sub Minutte wave ii to correct cycle from 7/27 low (2163) then it should turn higher again.

We don’t like selling the Index and favors buying the dips against 21446 low in the first degree. If pivot at 21446 low fails, then the move higher from 6/29 (21138) can be seen as a 5 waves diagonal. In this case, Index should pullback in 3, 7, or 11 swing to correct cycle from 6/29 low before the rally resumes.

DJI Mini Futures Hourly Chart

DJI Mini Futures Hourly Chart