Dow Jones Futures (YM_F) broke above June 10 high (26289) suggesting that the next leg higher has started. The Index is now showing an incomplete sequence from June 3 low (24610), favoring further upside. Short term Elliott Wave view calls the rally to 26289 on June 10 as wave 1 and pullback to 25898 as wave 2. This indicates that the entire rally from June 3 low is unfolding as an impulse Elliott Wave structure. Wave 2 unfolded as a double zigzag where wave ((w)) ended at 26050, wave ((x)) ended at 26261, and wave ((y)) of 2 ended at 25898.

Wave 3 is currently in progress and subdivides as an impulse in lesser degree. Up from wave 2 low at 25898, wave (i) ended at 26153 and wave (ii) ended at 26001. Expect the Index to see a few more highs to end 5 waves up from 25898 low. This 5 waves up will end wave ((i)) of 3. Index should then pullback in wave ((ii)) to correct cycle from June 13 low before the rally resumes. We do not like selling the Index and expect buyers to appear as dips continue to hold above 25898 in 3, 7, or 11 swing.

Dow Jones Futures (YM_F) 1 Hour Elliott Wave Chart

Dow Jones Future (YM_F) 1 hour Elliott Wave Video

Elliott wave view in Dow Jones Futures (YM_F) suggests that the decline to 24604 ended wave ((W)) on June 3. This decline ended the cycle from May 1 high as a 3 waves zigzag Elliott Wave structure. Wave ((X)) bounce is currently in progress to correct the cycle from May 1 high in 3, 7, or 11 swing. The internal of wave ((X)) rally is unfolding as a zigzag Elliott Wave structure. A zigzag is an ABC with  5-3-5 structure. Wave (A) of ((X)) is now in progress as a 5 waves impulse.

Up from 24604, wave 1 ended at 24938 and wave 2 pullback ended at 24684. Rally then resumes in wave 3 to 26085, wave 4 ended at 25974, and wave 5 ended at 26289. The 5 waves move higher ended wave (A) of higher degree. Short term, Index is in wave B pullback to correct cycle from June 3 low (24604) in 3, 7, or 11 swing before turning higher again in wave (C). We don’t like selling the Index. As the rally from June 3 low is impulsive, expect wave (B) pullback to hold above 24604 for at least 1 more push higher in wave (C).

Dow Jones Futures (YM_F) 1 Hour Elliott Wave Chart

Dow Jones Future (YM_F) 1 hour Elliott Wave Video

Elliott Wave view on Dow Jones Future (YM_F) suggests that the sequence from April 24, 2019 high (26694) remains incomplete and Index can see further downside. Short term, the rally to 25720 ended wave ((ii)) and wave ((iii)) ended at 24937. Internal of wave ((iii)) unfolded as Elliott Wave impulse structure. Down from 25720, wave (i) ended at 25592, wave (ii) ended at 2554, wave (iii) ended at 25159, wave (iv) ended at 25219, and wave (v) ended at 24937.

Index has resumed lower and broken the previous low on May 14 (25215), suggesting the next leg lower has started. Wave ((iv)) bounce appears complete at 25154 at the blue box area after a 3 waves bounce. Index still needs to break below wave ((iii)) at 24937 at this stage to avoid a double correction in wave ((iv)). We don’t like buying the index, and short term, while rally fails below 25720, expect Index to extend lower. If Index breaks above 25154 instead, then wave ((iv)) still remains in progress as a double zigzag Elliott Wave structure. In this alternate scenario, Index should still resume lower as far as the rally fails below 25720.

Dow Jones Future (YM_F) 1 Hour Elliott Wave Chart

Dow Jones Futures (YM_F) 1 Hour London Updated Chart 5.30.2019

YM_F reacted lower from the blue box as shown  in the above chart and reached 50 back of the rally from blue ( b) wave low. This allowed the shorts from blue box to get into a risk free position. However, afterwards it made another high and now should end 7 swings in 25275 – 25410 and start next leg lower in wave (( v)) or pull back  in 3 waves at least.

1 hour YM_F Elliott Wave Video

Short term Elliott Wave view on Dow Jones Future (YM_F) calls for the bounce to 25952 as wave ((B)). This move higher is a correction to the decline from April 24, 2019 peak. The first leg of the decline from April 24 high ended wave ((A)) at 25215 (not shown due to limited space in short term chart). This suggests that the entire decline from April 24 is unfolding as Elliott Wave zigzag structure. A zigzag is a 5-3-5 structure and wave ((C)) thus should unfold in 5 waves.

In order to avoid a double correction in wave ((B)) and provide validity to this view, Dow Jones Future needs to break below wave ((A)) at 25215. However, technical analysis on US Sectors such as Financial (XLF), Technology (XLK), Consumer Discretionary (XLY) suggest they have broken lower. Thus, we think it’s likely that Dow Jones Futures also extends lower.

Wave ((C)) is currently in progress and unfolding as 5 waves. Down from 25952, wave (1) ended at 25628 and wave (2) ended at 25904 as an expanded Flat. Wave (3) of ((C)) subdivides as an impulse in lesser degree. Wave 1 of (3) has ended at 25320 and the Index is correcting cycle from May 22 peak within wave 2 before the decline resumes. We don’t like buying the Index and expect sellers to appear in 3, 7, or 11 swing as far as pivot at 25952 peak stays intact.

YM_F 1 Hour Elliott Wave Chart

1 hour YM_F Elliott Wave Video

Dow Jones Futures (YM_F) has started to pullback earlier today. We  are counting the entire rally from December 26, 2018 low as an Impulse Elliott Wave structure. An Impulse has subdivision of 5 waves within wave I, III, and V. The high on February 21 at 26081 ended wave III of the Impulse. Internal of wave III subdivides in another 5 waves in lesser degree.

On the 1 hour chart, we can see wave ((4)) of III ended at 24862 and wave ((5)) of III ended at 26081. Internal of wave ((5)) further subdivides in another 5 waves of lesser degree wave (1), (2), (3), (4), and (5). This is the idea of fractal in Elliott Wave where each wave is comprised of smaller waves and the pattern repeats itself in smaller degree.

Wave IV pullback is currently in progress to correct wave III cycle which starts from December 28, 2018 low (22242). Potential target for wave IV is 23.6 – 38.2 Fibonacci retracement of wave III at 24617 – 25172. From this area, the Index either resumes to new high in wave V or at least bounce in 3 waves. The structure of wave IV pullback can still change but we propose a double three Elliott Wave structure (WXY). The first leg wave ((W)) subdivides as a zigzag where wave (A) of ((W)) has ended at 25753. Short term, while wave (B) bounce fails below 26081, expect Index to extend lower. If the Index breaks above 26081, then wave III still remains in progress but won’t change the overall idea that we can see a wave IV pullback soon.

1 hour Dow Jones Future (YM_F) Elliott Wave chart

Dow Jones Future (YM_F) Chart of The Day Video