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BUZZ- DJI wave may be close to crest
October 4, 2017 / 1:23 PM / 2 months ago

BUZZ- DJI wave may be close to crest

** DJI streaking again, now going for 6th straight higher daily close, 3rd straight record high finish

** That said, index rapidly nearing next Fibo projection targets that pose challenge for continued Wave 5 rise

** This as a daily momentum study has its own hurdles to clear

** Indeed, DJI just completed streak of 9 straight higher daily closes, 7 straight record finishes Sep 20

** This followed run of 10 higher daily closes, 9 record high finishes ended Aug 7

** And with Q3 finish, index up 8 straight qtrs, best run on that basis since 11 qtr run 1995/1997

** DJI up nearly 15 pct YTD, on track for its best yearly gain since 2013’s 26.5 pct rise

** However, on Elliott Wave basis, DJI can be in 5th wave up from early 2016 low, suggesting near 2 year advance near end. Chart: reut.rs/2yXtKEq

** Next Fibo projection 22718.94, just 0.3 pct above Tues close, ahead of 23044.17/23250.09, 1.8-2.7 pct Tues finish

** Daily RSI severely overbought, yet to exceed early Aug high

** And divergence vs late 2016/early 2017 peaks adds credence to view current action part of 5th wave (final rise up from at least early 2016)

** Support 22219.11 with rising 50-DMA (now 22030.67)

** Meanwhile, S&P 500 about 0.4 pct from major resistance amid crushed stock correlations

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