Dow Jones through Elliott Wave Princeples
If we look at the Dow Jones journey from the highest ever (29,568) down to (18,213), we can see clearly Waves 1, 2, 3 and 4 already formed with wave 3 being the longest. We are now at wave 4 which has retraced back to 38.2% (22,551) and may get extended to 50% (23,891). Wave 4 cannot extend to 61.8% since this will violate EW principles of not retracing to previous waves. After that DJ will take wave 5 and plunging down to 27.2% Fibo extension (15,125) making a new bottom. Wave 5 will mark end of this Bull market and reversal shall follow through A,B and C waves as shown on the chart.
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