The rally in Dow Futures (YM) that began from the April 7, 2025 low remains intact. It is unfolding as a five-wave impulse pattern according to Elliott Wave analysis. Starting from that low, wave 1 peaked at 39,649. A corrective pullback in wave 2 followed which found support at 36,922. The Index then resumed its upward trajectory in wave 3, which itself subdivides into five smaller-degree waves. As shown on the 1-hour chart below, wave 3 reached its high at 43,316. The market is now experiencing a pullback in wave 4.
Wave 4 is taking shape as a double three structure, a corrective pattern characterized by multiple sub-waves. From the wave 3 high, wave (a) declined to 42,518, followed by a wave (b) rally that topped at 42,944. The subsequent wave (c) dropped to 42,223, completing the first leg of the double three, labeled wave ((w)). The Index then rallied in wave ((x)), peaking at 43,069. Then it turns lower in wave ((y)), which also unfolds as a double three. Within this structure, wave (w) ended at 42,424, and a corrective wave (x) rally concluded at 42,860. The Index is now expected to extend lower in wave (y) of ((y)), targeting the 41,297–41,972 range. This decline should finalize wave 4, setting the stage for a potential wave 5 rally to new highs.
Dow Futures (YM) 60-Minute Elliott Wave Technical Chart
