Dow Jones Index tracing a triangle - means that upside has begunThe benchmark index Dow Jones Industrial Average, or simply put DJIA has been an upside since late May and the question going around is whether this rise is for real is it only a retracement before next wave down. I believe the correction is most likely over and the bounce we have been seeing of late is indeed a market reversal.
What you are seeing in the chart above is a triangle on a 2-hr chart of Dow Jones. Triangle patterns are always time consuming to the point of frustrating buyers and sellers alike, but they signify a thing or two and those are worth noting. Firstly, triangles appear in wave 4 (in a five wave structure), which means that after the triangle completes (which it will very soon as shown by the arrows on the chart), it will mark a brisk rise in prices in wave 5. The not so good news is that it also means that prices will correct significantly after completion of wave 5.
Overall the wave iv and wave v are part of an intermediate Wave 1 and the correction soon to follow (after wave v) will comprise wave 2. The markets will commence a major bull run in wave 3 once wave 2 retracement correction completes. So, tighten your seat belts and get ready for real action the markets. Most world indexes move together, which also means that along with US indices, most other major indices including DAX, FTSE, NIFTY etc. should mov along.
