Here is an updated chart for the Dow Jones Industrials (Dow) from my May 2016 post that predicted a move to the next sequential sine wave in the 5/8 series (5/8 x4, or 20/8), due to the tops at since waves at A & C. This provided a basis to continue a progression that could identify future key pivots – on a monthly basis. As can be seen in the chart below the 20/8 sine wave resistance is a match with the recent record high of 26,616.71 in the Dow.
What is the sine wave progression telling us now?
A support wave is formed by inverting the 20/8 wave (thick dashed brown) and starting on the 1/4 time point. This wave gives support to the important lows at B & D and therefore may identify support again if the Dow continues to correct off the recent high, or if a new temporary high is reached followed by a correction prior to the time target date of June 2019 (see bullet below).
Top price levels of each wave are extended to the right (brown horizontal dotted lines), whose intersections with the support wave identify lows at B & D, as well as the reversal month of October 2011 at point Z (small blue arrow).
From these additions, the following can be concluded:
The next sequential intersection is at point F, which is June 2019 at 21,405.82. From this analysis that would be an anticipated low for a possible 1.5 year correction.
The 20/8 wave top at 27,328.10 offers a possible higher high, in case the current massive uptrend has some more steam left.
The next sequential intersection for a major high is August 2022 at 27,328.10.
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