DJIA_Update_6_12_12

After the DJIA bottomed at $12,411 before breaking back upwards in a 3-wave pattern. The good news is in terms of my own observations that I got both the market direction and timing with yesterdays prediction, even though I went too far down on the morning low end. The good news is that I think that this pattern is a primer for a triangle pattern which expresses itself in waves a,b,c,d,e (5-waves). This is tentatively confirmed by adopting what I believe to be a more accurate wave count, based on today's wave structure.

As a result, the market should drop tomorrow. It will do this probably after coming a pinch closer to at least the lower resistance point, though given the strong underlying sentiment, it is possible that it may drop right out of the gate. The baseline is roughly $12,400. I think the market will remain at or above that level since flat B patterns generally follow zig-zag A waves. [labeled as A (black)]. After filling out point -e- (red), the market should begin its upward thrusting wave C (black). The length of wave C (black) will depend greatly on how low the market goes tomorrow.

All the best,

-W


[see attached chart]