Elliott wave analysis of DJI - It looks as the downside pressure is increasing.

Dow Jones Industrial Index Monthly

Dow Jones Industrial Index Hourly

 

Dow Jones Industrial Index:

 

In the bigger Picture nothing has changed. I have for a very long term been looking for wave D of a huge expanding triangle ending close to 16,450 during 2013 (please see my post from March 26 - 2012 here http://theelliottwavesufer.blogspot.dk/2012/03/dow-jones-industrial-index-interesting.html). It seems as we have a top in place at 16,174.51 on November 29 - 2013.

 

Looking at the hourly chart we can see, that the decline from 16,174.51 to 15,791.29 was in five waves and was followed by a three wave rally just above the 61.8% correction target at 16,028 (the high came near the 70.7% target at 16,057). The new decline does look impulsive in character. That said we still need more confirmation to call the top of wave D. First of cause we need a break below 15,791.29 (low of wave i) and next a break below 15,672 (where wave iii will be equal in length to wave i). A break below the later will add confidence in wave D being in place and wave E having taken over for a massive decline towards at least 10,400.

 

For now stay focused towards the downside as wave iii develops.   

 

VIX:

Interesting to see how complacency still dominates despite the current impulsive looking decline.
Is everybody expecting a Xmas-rally?

Looking at the Newsletter Bull ratio from Investor Intelligence optimism runs higher, than seen in a very long time.