SUCKERS RALLY - DOW JONES TO DROP 20%

4 июн. 2023 г.

From the beginning of this year US 30 has been moving in a corrective fashion due to the fact that we are forming our 2nd corrective wave in the Supercycle. Based on my Elliot Wave analysis we are in the second wave of the Grand Supercycle which means we should see two impulsive moves towards the downside and one corrective move to the upside. As long as price does not retest the 36970.17 price level, which is the end of Grand Supercycle Wave 1, any move to the upside is just a correction and will eventually be followed by a bearish impulse.

As it stands, we are completing wave C of our 2nd corrective wave of the Supercycle. This means we should see price retest the liquidity level at 35523.21 before we get our 3rd impulsive wave towards the downside. We can use the break of the 34717.29 level, as well as the break of the dynamic support (our ascending trendline) as confirmation of our sell and take profits at the 28670.29 level.

I will be staying out of the markets for the next couple of weeks to see how this setup plays out before placing any trades and will update you on when I place my entry as well as the stop and target if the trade is valid.

Invalidation - Retesting and breaking past the 36970.17 level.