Background: The DOW 30 has been declining over the past five trading days. This is after an historic rally post election. Barchart’s opinion based on their thirteen indicators is 40% buy.
News this morning of Russia changing their first strike nuclear criteria seems to have spooked the markets.
This appears to be setting up a good buying opportunity for a swing trade.
Analysis:
- My Elliott wave count shows the current short term decline from 11/11/2024 is a correct zigzag wave retracing the impulse move from 11/4/2024 to 11/11/2024. The hourly chart implies the correction down is nearly complete; possibly today. So I expect a tradable rally for a swing trade.
- My Gann Slope lines based on the squaring of time and price agree with the Elliott wave count.
- The daily wave pattern indicates a low likely today.
- The RSI(2) is oversold.
As usual require price confirmation and buy to enter with a stop order.
Recommendation:
Buy the December Micro Dow Jones 30 at 43146 stop for 11/19/2024.
For managing the trade after entry, check out my trading philosophy for futures on this website.
Happy Trading,
Dave Register
CTA