Dow Jones Industrial Average – Elliott Wave Cycle Analysis
Following the market crash of 2020, the DJI initiated a new long-term impulsive wave cycle:
- Wave 1: Began on 30 March 2020 and extended through 27 December 2021, marking a strong bullish recovery phase.
- Wave 2: A corrective zigzag pattern unfolded, bottoming out in October 2022.
- Wave 3: A powerful rally commenced post-correction, culminating on 2 December 2024, consistent with the characteristics of a third wave—typically the strongest in momentum.
- Wave 4: A complex elongated flat correction formed, concluding around 7 April 2025.
- Wave 5: The index has since resumed its upward trajectory, entering the final leg of the cycle.
🔺 Structural Implication:
Wave 1 remains the largest in magnitude, suggesting the development of an Ending Diagonal in Wave 5. This pattern typically occurs in the final wave of a motive sequence and is characterized by converging trendlines and weakening momentum.
📉 Key Technical Signal:
To validate the Ending Diagonal structure, the price must breach the 1–3 trendline, which is currently within close proximity. A breakdown below this trendline would signal the completion of the long-term bullish cycle and potentially usher in a broader corrective phase.
⚠ Investor Note:
The DJI appears to be approaching the terminal phase of a multi-year impulsive cycle. Traders and investors should exercise caution and monitor key structural levels closely, as the risk of a significant reversal increases upon completion of the Ending Diagonal.
---
Following the market crash of 2020, the DJI initiated a new long-term impulsive wave cycle:
- Wave 1: Began on 30 March 2020 and extended through 27 December 2021, marking a strong bullish recovery phase.
- Wave 2: A corrective zigzag pattern unfolded, bottoming out in October 2022.
- Wave 3: A powerful rally commenced post-correction, culminating on 2 December 2024, consistent with the characteristics of a third wave—typically the strongest in momentum.
- Wave 4: A complex elongated flat correction formed, concluding around 7 April 2025.
- Wave 5: The index has since resumed its upward trajectory, entering the final leg of the cycle.
🔺 Structural Implication:
Wave 1 remains the largest in magnitude, suggesting the development of an Ending Diagonal in Wave 5. This pattern typically occurs in the final wave of a motive sequence and is characterized by converging trendlines and weakening momentum.
📉 Key Technical Signal:
To validate the Ending Diagonal structure, the price must breach the 1–3 trendline, which is currently within close proximity. A breakdown below this trendline would signal the completion of the long-term bullish cycle and potentially usher in a broader corrective phase.
⚠ Investor Note:
The DJI appears to be approaching the terminal phase of a multi-year impulsive cycle. Traders and investors should exercise caution and monitor key structural levels closely, as the risk of a significant reversal increases upon completion of the Ending Diagonal.
---
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.