Possible DIA Intraday Elliott Wave Interpretation

Oct 17, 2008: 10:41 AM CST

In the previous post, I mentioned the possible Elliott Wave Count for the intraday DIA 5-minute chart.  Let’s look at that in more detail and see if the Elliott Wave count plays out through the rest of Friday:

Wave 1 rose from $82 to $87 for a $5 wave before Wave 2 retraced to the 50% Fibonacci zone of Wave 1 and found support.  A fractal “ABC” correction confirmed Wave 2.

Wave 3 began around 1:30 and spanned from $84.50 to $90 for a $5.50 Wave into the close (also completing a “Bull Flag target), which itself sub-divided into a 5-wave impulse, confirming the powerful 3rd wave.  Notice also that the sub-wave “iii” itself sub-divided into a fractal 5-wave impulse (visible only on the 1-minute chart) which further gave evidence we were seeing the 3rd Wave.

Wave 4 was sudden and was created by the overnight gap this morning which retraced to sub-wave iv of the prior 3 Wave.  Wave 4 also retraced to the 50% Fibonacci retracement of Wave 3.

What’s happening now?

Wave 5 is underway, which has apparently already formed sub-waves i and ii (which subdivided into its own “ABC” Correction).

IF this count is correct, then we are currently in sub-wave iii of the final Wave 5 of the completed impulse.  Wave iv is yet to come which – depending on how far sub-wave iii goes, could retrace to $85.50 or so.  The final Wave 5 should terminate around $90.50 to $91.00, but if the principle if “Equality” is correct (when Wave 3 is the longest, Wave 5 should be equal to Wave 1), then if we add $5.00 to the start of Wave 4 (at $87.00), then that would give us a Wave 5 ‘equality’ target of $92.00.

We’ll see if this plays out according to my interpretation of Elliott Wave!


2 Responses to “Possible DIA Intraday Elliott Wave Interpretation”

  1. todd Says:

    bang on! just hit $92…nice job!

  2. Don Da Mon Says:

    Moving up into the week picture on the S&P – here’s what I see.
    Today looks like a bear flag which turned at the point that would be needed to continue a “measured move” down to retest last Friday’s low (839?). I could see a retest next Monday and into Tuesday.

    Otherwise, perhaps an ascending triangle is forming with resistence at near 1000 and a support line at 880 early next week.

    I’d bet a retest will happen.