One of WaveTimes readers, Tom Davis, has sent me a very interesting message, pointing out that we need to be careful about being overly bullish in other markets, given the non-confirmation in Dow Jones Utility Average (DJU). To be honest, I am also guilty of not paying too much attention to important indices such as the DJU (unfortunately, there are just so many hours of free time we all have!). In case you are like me, then this article might be an interesting read, because it explains why the Dow Jones Utility Average could be a leading indicator to the rest of the market.
In today’s post I have presented you with my Elliott Wave analysis of the Dow Jones Utility Average. As usual, you will find most of my comments written directly on the chart itself. Please bear in mind that we are only preparing for a top that will probably come several weeks later. You should also remember that some other experienced Elliott Wave specialists are bullish for the broad market, and so it is best to keep an open mind. My writing is not to much as to help you time the market or make investment decisions. Rather it is meant to illustrate how a professional investor/trader would think through various possibilities before exposing real money to the market. WaveTimes is where you come to learn, not to get tips. Good luck.