DJIA-5-21-19

Dow Jones Industrial Average - this pullback is only the first leg down of A-B-C correction

DJIA completed a rally structured as Five Wave UP fractal at 26,695.96 on 23 April 2019. I count that rally as wave ( A ) of ( 5 ). Please scroll down to see where we are in the bigger five wave up fractal started at the lows of 2009. Off the April low we should get a corrective wave ( B ) down structured as A-B-C. Decline that bottomed at 25,222.51 on 13 May 2019 is a very shallow and to quick if to compare to the preceding rally. That pullback retraced slightly more than 23%. That is a super shallow for wave ( B ) down. That is why I think we have see only the first leg down in wave A of ( B ). And move up we see here is a corrective wave B up of ( B ) down. What we are watching here is the start of wave ( c ) of B. That wave ( c ) of B should have an impulsive structure and may come as a strong rally that should make bears to capitulate and entice bulls to open new longs. That wave ( c ) up may stretch to 24,462 or even higher. In the worst case scenario that ( c) of B up may even make a new higher high for 2019 playing out an expanded flat corrective structure.

DJIA - 90 min chart updated on 21 May 2019

When that corrective wave B up finds its top we should get a strong drop in wave C of ( B ) down ( look at the chart below). That would be a starting point of another strong but final rally in wave ( C ) of 5 targeting new all time high.

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