Short term Elliott Wave analysis in Dow futures (YM) indicates that the Index has completed a correction in wave (4) at 37473 and has turned higher in wave (5). In order to confirm this bullish scenario, the Index needs to break above the previous wave (3) peak at 40358. The recent price action shows that up from wave (4), wave ((i)) ended at 38451, followed by a pullback in wave ((ii)) to 382808. Subsequently, wave ((iii)) ended at 38682, with dips in wave ((iv)) at 38428 and the final wave ((v)) higher ending at 38801, completing wave 1 in a higher degree.
The subsequent pullback in wave 2 unfolded as a zigzag Elliott Wave structure, with wave ((a)) ending at 37944, a rally in wave ((b)) to 38592, and a decline in wave ((c)) to 37866, completing wave 2 in a higher degree. The Index has now turned higher again in wave 3 of (5), with wave (i) ending at 38527 and a pullback in wave (ii) to 38037. The bullish momentum continued with wave (iii) ending at 38958 and dips in wave (iv) to 38661. Moving forward, as long as the pivot at 37473 low remains intact, any pullback is expected to find support in 3, 7, or 11 swings for further upside potential.
Looking at the 60 minutes Elliott Wave chart for Dow futures (YM_F), the recent price action and wave counts indicate a bullish outlook for the Index. The completion of wave (4) correction at 37473 followed by a rally in wave (5) suggests further upside potential, with the need to break above the previous wave (3) peak at 40358 to confirm the bullish scenario. The recent waves ((i)) to ((v)) and subsequent pullback in wave 2 show a clear Elliott Wave structure, with the Index now in wave 3 of (5) targeting higher levels.
In conclusion, the short term Elliott Wave analysis for Dow futures (YM) points towards a bullish trend with the completion of a correction in wave (4) and a subsequent rally in wave (5). The Index is expected to find support on any pullbacks as long as the pivot at 37473 low remains intact, with further upside potential towards higher levels. Traders and investors should keep an eye on the key resistance level at 40358 for confirmation of the bullish scenario and potential trend continuation in Dow futures.
