The New CS Board

[dindindon]

07/21/14 DJI

For SPX, please refer to this post.

On 07/17/14, Dow Jones Index DJI marked an all time intraday high 17151.56. The aberration is only 1.31 points from my projection made on 04/01: 16719.24 -16810.54-17150.25.

04/02/14
The range is 16719.24 -16810.54-17150.25

chart time stamp April 1, 2014, 2:04:51 PM
link: http://forexrainbow.com/viewer.php?file=72900777363167492412.jpg

The simple equation in the following chart shows how i got the high
target 17150.25. For this particular case, the Fibonacci summation series projection outperform the long term trend line method.

It is still too soon to say 17150 is a good terminal point. To be bearish, Firstly, the index needs to dip below 16805-16810.
The local rising wedge embraced by purple and yellow color trend line is the ongoing pattern.

The rising wedge can be one of the most difficult chart patterns to accurately recognize and trade. While it is a consolidation formation, the loss of upside momentum on each successive high gives the pattern its bearish bias. However, the series of higher highs and higher lows keeps the trend inherently bullish. The final break of support indicates that the forces of supply have finally won out and lower prices are likely. There are no measuring techniques to estimate the decline – other aspects of technical analysis should be employed to forecast price targets. http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:rising_wedge_reversal

Then, we can use the standard Fibonacci retracements as a guide, the overlap seems in the range of 16450-16460.

 
             17151.56- 16015.32             17151.56-15340.69 
 0.236   16883.41                              16724.19 
 0.382   16717.52                              16459.81 
 0.500   16583.44                              16246.13 
 0.618   16449.36                              16032.44 
 

To explorer higher side, i need to tabulate two more Fibonacci extensions:
(18610.54 + 18322.23) * 0.5 = 17566.46
10404.49 + 1.236 * (12876.00 – 6469.95) = 18322.37
10404.49 + 1.382 * (12876.00 – 6469.95) = 19257.65
So, keep in mind that 17566.46 – 18322.37 could be the target range for the next assault on the higher side. At this moment, let us focus on the possible pullback target,