DJIA Follow Up

Recently I have really having little mood in looking at charts, primarily because all of them are reversing and still procastinating on moving down. However, DJIA interests me because it has broken its previous high of 10,719. As we speak, it is hovering around 10,937.


Fig 1 DJIA Daily Chart

I have made some adjustment to the wedge envelop so that it covers the most recent spike. As the data is good till yesterday, my projection of the resistance would base on the wedge envelop resistance. Tonight's resistance is 10,939. Breaking this resistance could mean a wedge break down?

As for the wave count. Does this mean the previous count was wrong. Probably. The other explanation however is that this is the B of the A wave. This could be the B wave did a more than 100% retracement. It happens and is a valid scenario.

To some extend, I am quite confident that DJIA is coming down, judging from its indicators which are both at the top and turning. This is even more obvious when RSI is on divergence.

Okay, I say it is coming down, if not tonight, it should be tomorrow.