Short Term Elliott Wave View suggests the rally from December 21, 2020 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from December 21 low, wave (i) ended at 30198 and dips in wave (ii) ended at 29735. Index then resumed higher in wave (iii) towards 30502, wave (iv) ended at 30166, and wave (v) ended at 30691. This completed wave ((i)) in higher degree.
Down from there, pullback in wave ((ii)) ended at 29765. Index then broke above wave ((i)) at 30691 and resumed higher in wave ((iii)). Up from wave ((ii)) low, wave i ended at 30438 and dips in wave ii ended at 30160. Index then resumed higher in wave iii to 30912 and wave iv pullback ended at 30608. Expect Index to end wave v of (i) soon. Afterwards, Index should pullback in wave (ii) to correct the cycle from January 5 low before the rally resumes. As far as wave ((ii)) pivot low at 29765 remains intact, expect pullback to find support in 3, 7, or 11 swing and Index to resume higher. We do not like selling the proposed pullback.
Dow Futures (YM) 60 Minutes Elliott Wave Chart
