The Dow’s thrust today was not as strongly impulsive as the S&Ps’, but this could work to our advantage if it helps set up a ‘camouflage’ entry opportunity. Notice in the inset that if the rally were to exceed the #1 peak and then pull back, it would leave a couple of slightly higher peaks unbreached. This would likely be read as a double-top by the riff-raff and most technicians (although not by Elliott Wavesters, who know an impulsive move when they see one), creating potentially ideal conditions for a ‘camo’ entry using a buy-stop. I’ve sketched this hypothetically for your further guidance — with the hypothetical but not unlikely dip below the initial point ‘C’ low, just to screw with traders’ brains. _______ UPDATE (Jan 25, 11:19 p.m. EST): DIA opened sharply higher on a gap, negating our buying strategy. The stall almost precisely at the 200.67 midpoint pivot (see inset, a new chart) implies this vehicle will be bound for 204.65 once decisively above the pivot. _______ UPDATE (Jan 30, 8:53 p.m.): I’m confident that this morning’s steep selloff will turn out to have been a fake-out if the futures can close today above 200.39. Use a 202.35 rally target if that happens. _______ UPDATE (Jan 31, 8:49 p.m.): I’ve changed the chart to reflect a new, somewhat lower target than the one at 204.65 flagged above. DIA would trip a theoretical buy signal if it hits 198.54, but if it closes above p=199.53, you can bet the rally will continue to at least D=201.49.
