DOWJONES INDUSTRIAL AVERAGE: Short term study based on Elliott wave theory. Resistance @ 13050 and expect slow and steady fall up to 12285.

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Dow Jones has much better chart than any other indices in the world. It hit a recent high of 13338 nearly 10 trading sessions back.

As of now it is giving us a sense that it has done with 5 wave cycle. It has broken then end point of 4^th corrective down wave at 12710.

I have three important conclusions as of now.

• If DOWJONES sustain below 12710 then we must expect levels of 12535 which is 38.20% levels. Very soon it will test 50% retrenchment line too which is at 12286.
• We are bound to see some reactions on upside before breaching 12500 marks on decisive way.
• On up side trading resistance will be at 12845. Decisive short term resistance will be at 13050. I am expecting test of 12286 without moving above 13050.

If I will have a choice to trade DOWN JONES then I would like to short it in any pullback and will prefer to press stop loss above 13050. Pullback will be a situation to form wave 'b', it should above near or above 12845.
I am not ruling out the possibility of 5-7% dip in Dow jones as of now.

I will update more about S&P 500 also very soon. 

Suggesting to read this also -
http://viecapital.blogspot.in/2012/01/dow-jones-technical-view-as-of-11-jan.html
On Jan 2012- Dow Jones was forecasted for 13200-13400 as target for rise. We have seen high at 13338

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Thanks & Regards,

Praveen Kumar

Mail id – Praveen@viecapital.com

Mobile number – 09893369889