All the indices have been a nightmare to count for a long time. Though I had been entertaining corrective macro patterns for many, many months, all of those involved conclusions just ahead, and none of them really worked. I wish I had discovered the big A-B-C pattern sooner as this would have been so much easier all along. It fits just about everything, including many world indices. It counts perfectly—no fudging like all the impulsive counts make us do. I’m quite happy with it.
I was recently scared by the spiky high on the $DJT, but I now see that it’s ahead of the other indices. It’s already done its first impulse wave of the big primary (pink) C. The violence of that spiky high tells you just what’s coming next (it’s going to get even more violent).
This works perfectly for it to be one wave ahead, as it should top first, which is a major feature of Dow Theory (where the final high in a market is discovered once the transports fail to “confirm” a new high made by the industrials, but I won’t get into all of that here).
This can go to 22,000 from here in the next wave.
[UPDATE]: Oops, the orange B goes under the green E and I’m too lazy to replace the image.
How to trade this ?
There is an industrials ETF ($IYT) that tracks this somewhat well (it doesn’t have all of the same constituent companies), but I mostly posted this chart to serve as additional evidence of the large 3-wave move we’ve been in.