The Dow is completing a structure that has been used by Market Makers (formerly known as Specialists) for decades. Their next step will move the Dow to lower levels. The initial move is expected to hit 20,819 (+/-1%) by February 4, 2019 (+/-1 day). Research indicates there is a high probability that an additional move below this level will take place and would take the Dow down to a level of 16,349 (+/-1%) by February 19, 2019 (+/-1 day).
Dow: Accelerated Timeline
On Thursday, January 17, 2019 the Dow closed above its 50% retracement point between a high of 26,789.08 on October 3, 2018 and a low of 21,712.53 on December 26, 2018. This move supersedes Model @2019-1, Rev. 0 and indicates Market Makers are accelerating their schedule to prepare a meaningful decline that could start as early as next week.
Dow: Brief Decline in the Dow
Based on today’s high of 24,288.61 and a closing price of 24,207.16, adjustments were incorporated with the expectation of a decline to January 24, 2019 (+/- 1 day) and a projected close of 22,942.19 (+/-1%).
Dow: Narrow Range of Trading
The Dow is expected to travel in a narrow range during the first quarter of 2019. The following model provides notional values expected during this period. Adjustments will be provided, as needed.
Current Projected Scenario (Model #2019-1, Rev. 0)
January 15, 2019
Dow closing price: 24,065.59
1. Dow declines to January 18, 2019 (+/- 1 day)
Projected close: 23,091.13 (+/-1%)
2. Dow moves up to February 4, 2019 (+/- 1 day)
Projected close: 23,904.86 (+/- 1%)
3. Dow declines to February 15, 2019 (+/- 1 day)
Projected close: 22,348 (+/-1%)