Strike Eagle
Just trying to my head around this, the fact that the Dow elected 2 bearish reversals, major and minor is of less consequence since it penetrated 26212 and closed above ? I guess if I had known the reversals of the Nasdaq and S&P I would've expected the move today, unfortunately I only have the Dow subscription.
The daily GNW of the Dow today seems not of much use when it contradicts the bullish closes of all the indices as you described.
Do you follow past elected reversals for any length of time or once elected they're done?
Thanks for your explanations
Yes exactly seeing the market penetrate a reversal and close above usually indicates a move in the opposite direction. directional changes tend to be strong moves in a certain direction so the Dow really needed to at least elect that minor to suggest it goes down further. Do not expect absolute precision with an index regarding the reversals the Dow did come close to its next major daily bearish. At that time the S&P 500 and Nasdaq were testing their major daily bearish reversals with many more reversals just below indicating strong levels of support.
It really is the reversal system first, then the array and last is the GMW which is usually wrong especially when trading the reversals in reverse. The GMW is only pattern recognition nothing more. With the GMW it is more accurate on the longer term trends than the shorter term so monthly and up.
elected Reversals can still provide support or resistance at times but have ultimately have lost their ability to provide a buy or sell signal so essentially they are done once elected.
We came close to the next bullish reversal 26535 on the Dow so I suspect the directional change may be to the downside but cannot be sure this time since due to a major daily bullish reversal being elected.