Dow Jones Industrial Average Yawns at Fed Minutes

Dow Jones Industrial Average barely budged through the Fed minutes Wednesday closing near the same price as where we were on Monday and Tuesday’s close.

We wrote on Monday how Dow Jones Industrial Average was primed for further correction. We are anticipating last week’s high of 22,178 to hold with another punch lower towards 20,000 to 20,400.

The price action for DJIA earlier this week has produced a high 22,076 which is a normal and typical bounce within the bearish pattern we are watching. To this point, the previous forecast is still valid as we anticipate DJIA rolling over within the next couple of days.

The Relative Strength Index is holding below peak levels suggesting the current move higher is lacking sustainable momentum. This is another clue of a weak market that might seek out lower levels.

Bottom line, we are anticipating DJIA to turn lower from near current levels on a path towards 20,400. This forecast remains valid so long as price remains below 22,178. A move above 22,178 will cause us to consider alternative patterns at play.

Why do traders lose money? Here is the biggest mistake we have researched.

---Written by Jeremy Wagner, CEWA-M

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

Recent Elliott Wave article by Jeremy:

AUDUSD longer term correction resuming?

USD/CAD Bounces from 1.24 target, yet bullish pattern appears incomplete.

Can USDCHF rally while US and Korean tensions are high?

EURUSD finds support at the former resistance level.

Crude oil prices stuck in a sideways triangle consolidation.

Gold prices advance in preparation for $1296 retest.

USDNOK pivots at common wave relationship.