We timed Thursday's INTERIM BOTTOM with pretty good precision, and now it's time to look ahead in anticipation of the next likely move. In chart 1, the $DJIA (Dow Jones Industrial Average) is shown to have completed an EWT 5-wave move that started on January 20th. Consequently, a pullback to the bottom area of wave 4 is to be expected per the EWT guidelines.
Chart 1. $DJIA wave analysis.
As for the S&P 500, I believe the intraday low established on February 11th was a bit illusive. Frankly, I've learned over the years not to put too much faith in EWT when it comes to weighted averages encompassing 500 constituents. Still, I always try my best to put forth an objective analysis. Charts 2, 3, and 4 below depict my wave interpretations for the $SPX (S&P 500), $SPXEW (S&P 500 Equal-Weighted), and ES Z6 (S&P December futures contract), respectively.
Chart 2. $SPX wave analysis.
Chart 3. $SPXEW wave analysis.
Chart 4. ES Z6 wave analysis.
Finally, the $SOX (Philly Semiconductor Index). As shown in chart 5, its wave progression couldn't be any clearer. A pullback to the ~761 area in the coming days/weeks should set the stage for a breathtaking bull run aiming for ~900+. In fact, chart 6 is affording me the benefit of clarity for years to come, and I couldn't be more grateful.
Chart 5. $SOX wave analysis (daily time frame).
Chart 6. $SOX extended wave analysis (weekly time frame).
Peter Ghostine (@peterghostine)
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