Elliott Wave count near completion
I posted the previous DJIA analysis on the 25th of October, representing the 12,300 main resistance level that was tested in the end of the last week.
The Elliott Wave count seems to be complete for wave 2 as is developed in 3 sub waves ([a]-[b]-[c]). The rally of this month was strong enough to reach the highs area of the current year and this points out the function of wave 2: make the investors to forget about the primary trend direction (bearish in our case).
Even if a wave 3 is expected, the price action in the next days should confirm this possible trend reversal with new lower lows (more easy to see in lower timeframes).
On a closer look (30 min. chart) wave [c] is formed of 5 waves and it satisfies the condition of an ending wave. However, the close analysis of wave v seems to have only 4 waves up to now, this meaning that the index could move higher on a final up swing, before the primary wave 3 can begin.
Line T1 is very important for the trend, as a future break below it will give extra signal of a reversal. The main support for now are T1 trend line, 11,940 and 11,710 levels.
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