Published 29th November 2018

Wave action failed to show further upside continuation. Instead, prices reversed and came extremely close to last week’s low.

We’ve indicated in our short-term update that the Dow Industtrials can unfold many paths at the current junction. That’s still valid. Today’s update shows the most likely paths if last week’s low gets broken to the downside. If that happens, the market is probably tracing a correction along the grey channel to the downside. The most likely paths are in that case the irregular flat or some leading diagonal structure. It is important to understand that last week’s low has to get broken in the cash market first. Last week’s low is just a few points away in the S&P 500 premarket trading as we publish this. The Dow lows will probably break also if the S&P low doesn’t hold. What happens if last week’s low doesn’t get broken? This implies a successful retest. It simply leads to the conclusion that the black path of the short-term update below is most likely. Again, a break of last week’s low leads most likely to an attack on the late October low. The paths from today’s update have the highest odds in that case.

Last but not least, we would like to point out at the market carries elevated risk if the October lows get approached again. Market participants placed most likely stops around these levels. We will closely watch how momentum and selling pressure behaves if the Dow trades down towards 24,120 points.

The analysis above is a historical abstract of our DJIA Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.