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Friday, August 8, 2014

DOW

This is what I Think the count is on the 1 hour Dow Chart. It looks like a 'complex' wave structure as labeled. I will be watching to see if this fails at the 38.2% level. Note the little swoop (blue line) in the cloud. It also looks like a wedge forming (bullish). If the Dow has turned here, there will be a pullback wave that will not go below the low,an a/b wave,and will progress to break the cloud. If it is going to fail the ZLR on the KST will roll over. The Fast Full Stochastic will rollover and cross with price,with the KST not
rolling over.(flattening)
The Daily Chart has the Confirmation Line Bouncing off Cloud support and the 200 sma. The KST has dropped below the ZLR,but the difference between k%and D% is fairly large.
I Do Not see any Divergence in the RSI or the Stochastic. A Test of the 100 SMA and the Bottom Cloud resistance is next.I would refer to the 1 hour chart for guidance.

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