LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Precious Metals Update Video: Gold up as people ran into safe havens
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - March-22-2019

Gold Mid-Tiers’ Q4’18 Fundamentals
By: Adam Hamilton, Zeal Research

Self-Destruction: Cheerleading the Process
By: Gary Christenson, Deviant Investor

The U.S. Economy Is In Big Trouble
By: Dave Kranzler

Gold Resource Corporation Mirador Mine Development Crosscuts 6 Meters of 992 Grams Per Tonne Silver
By: Gold Resource Corp.

Central Banks Are Messing With Your Head
By: Thorsten Polleit

A Permabear Talks Lollipops and Roses
By: Rick Ackerman, Rick's Picks

Gold …Some Confirmations to Watch For
By: Rambus

On The Hot Seat
By: Ted Butler


GoldSeek Web

Dow Back at Record Highs - Where’s the News?

 -- Published: Thursday, 5 October 2017 | Print  | Disqus 

By Mike Golembesky

In early September I wrote an article that asked the question, “Is it back to buy the dip or time to sell the rip?” 

Since the publication of that article, the Dow has moved up over 900 points off of the low that was struck on September 5th. So clearly the answer to the question asked early this month was that it was still indeed time to buy the dip on the Dow Jones Industrial Average.

We now ask how much higher can the Dow go prior to seeing a significant retracement as we enter the final quarter of 2017?  

The past month has not been filled with good and or happy news. We have seen three major hurricanes make landfall on U.S. soil, terror attacks both in the U.S and in abroad, missile launches over Japan from North Korea, more failed attempts to pass legislation in Washington and an FBI raid on President Trump’s campaign manager. Any of these events could have very easily been used by the media as the “reason” for a drop in the markets.

Many have been expecting the market to "react" to all of this bad news and move lower. Of course, the markets have done just the opposite as the Dow has now trading at all-time highs. The fact that the market did not “react” as people might have expected it to do on such a string of bad news has made many angry and repulsed.

While the events over the past month have been tragic, and quite literally evil in the case of the terror attacks, the markets simply brushed off these events as if they didn’t even matter. Of course, the reason why the market brushed off these events is really quite simple to answer. Simply stated, none of these or any other exogenous news events matter to the market. The only thing that does matter to the market is the sentiment of those who are speculating in the market. 

Only when that sentiment once again turns negative will the market begin to "react" and correct lower. Of course, there will very likely be some kind of bad news that the pundits will attempt to assign the correction in the market. Once again re-enforcing the cause and effect theory that is so prevalent in the mainstream financial media today. 

Price pattern sentiment indications and upcoming expectations

With the Dow now moving higher beyond the previous all-time highs, I focus on both the structure up off of the August lows as well as the Fibonacci price extension levels for the Dow.

There were several issues with the initial move up off of the 21,600 on the Dow from both a Fibonacci perspective as well as purely structural perspective. The first two series of wave patterns did not follow the typical guidelines that we expect to see for a continued followed through to the upside. Unfortunately, this irregular pattern off of those lows is still leaving us with two distinct scenarios as to whether or not we have a completed pattern in place at current price levels.

Both of the paths that I am watching do still suggest that we are in a larger degree topping zone that should result in a fairly deep correction into the later part of the year. I still cannot rule out that we still will see higher levels into the end of this month and even into November prior to that top occurring, however. These two paths are shown in both white and yellow on the charts below. 

Under the yellow path, the Dow would still need to see yet another fourth wave down followed by a fifth wave up to complete the larger degree pattern. Under this case, support for this minor degree fourth wave would come in at the 23,202 -22,148 zone. This would be the support zone that I would want to see broken to give us an initial signal that the Dow has put in a larger degree top per the white path. If that support zone holds then it would suggest that the Dow will still see another high to finish off the wave (v) of the larger degree pattern under the yellow path.

So while it is still too early to call a top in the Dow, I do still remain cautious in the near term as we are still trading in a larger degree topping zone. If and when we break the support levels noted above, then it will give us more confidence that a top has indeed been struck in the Dow. Until that occurs, however, the trend is still up and the market is still bullish -- regardless of how angry it continues to make the pundits.

See charts illustrating the wave counts on the Dow.

Mike Golembesky is a widely followed Elliott Wave technical analyst, covering U.S. Indices, Volatility Instruments, and Forex on (, a live Trading Room featuring intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.


| Digg This Article
 -- Published: Thursday, 5 October 2017 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.