Update

At the highs on Thursday the Dow was within 100 points of it’s July top. I think the major indices are very close (if not already undergoing) a sizeable reaction which will last a few days to a couple weeks. As I mentioned earlier, the Dow seems to be in a corrective pattern that’s been going on ever since the start of the year, so I would not expect a runaway rally to new highs on the index.

Here’s my current Elliott Wave projection for the Dow. It looks like an upward double zigzag has been going on since February
Dow double zigzag projection

The upcoming drop labeled in light blue on the Dow’s chart will likely correspond to the drop from points 20-21 on the NASDAQ’s Three Peaks Domed House pattern discussed here.

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