Wave D of the major expanding triangle is still developing, but the upside potential is becoming increasingly limited. However, as long as support at 15,867.35 stays unbroken we must accept the possibility of a move closer to 16,200 and even a continuation higher towards 16,337, where wave v will be equal in length to wave i of c.
That said the bearish divergence, that have been developing since June 2013 warns that a major top could be in very soon.
As always it will be prudent to protect your positions with a stop. It can be an aggressive stop just below 15,867 or a much more conservative stop just below 14,551.
Nice divergence on DIA.
ReplyDeleteBut its not there on SPY, QQQ, IWM.