Waves, Patterns & Projections (2004)

My interpretaion of this data is that DOW is likely to be in the final fifth wave Down of a secondary correction and, once again, I am warming to the idea that the 78 day rise from 10012:10706 (closing) was the first part of an Up Segment that is likely (after 60 days Down) to resume any day now and last night's 10215 could even end up being not far away from the lowest closing level in a secondary correction.

Although still a distinct possibility, I'm not at all sure that we will see a secondary Bear akin to that of the 1976/1978 Stagflation episode.....cat100's New Era may not be as far fetched as previously considered......after all American fundamentals may actually be improving with Oil partially tamed down to below $60 and inflationary fears probably well overdone and the interest rate tightening curve possibly not too far from the top.

NAS, after 3 waves Down totalling (08.74%) over 50 days, also looks like it might have found a solid new floor @ 2026 (intraday 13/10).

Since DOW reached 10754 (intraday) on 19/02/2004 it has basically been in a holding/sideways pattern (despite reaching 10984 early in 2005).....not a reciprocal Bear market admittedly but after 18 months of "restraint" maybe that is sufficient of a consolidation to allow the next major (American) move Up to commence.