oldschoolwaver
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Upon further review of the Dow, we are in a Triple Flat. When looking at the below chart, it's clear that each wave-b has retraced more than 61.8% of the preceding wave-a.
While the most recent wave-b retraced more than 61.8% of wave-a, it was less than 81%. This type of retracement sets up for a B-Failure. When wave-b is this weak, you can expect wave-c to retrace at least 61.8% of wave-b. This gives us a minimum target of 11298.84.
It appears that the market will surpass the 11,300 target and make a new high based on the performance of the mid-cap indices. So, look to stay long until we touch the supply line of the channel. Once we hit this resistance line, it will be time to get short.
![Dow_7_8_06.png](/proxy.php?image=http%3A%2F%2Fwaveman.mysmp.com%2Fmysmp%2FFCKeditor1%2F%2FImage%2FDow_7_8_06.png&hash=81bfb08fb47c0219047d04eb9d4e0ceb)
While the most recent wave-b retraced more than 61.8% of wave-a, it was less than 81%. This type of retracement sets up for a B-Failure. When wave-b is this weak, you can expect wave-c to retrace at least 61.8% of wave-b. This gives us a minimum target of 11298.84.
It appears that the market will surpass the 11,300 target and make a new high based on the performance of the mid-cap indices. So, look to stay long until we touch the supply line of the channel. Once we hit this resistance line, it will be time to get short.