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Dow Jones and copper overlap suggests nested Elliott Wave impulses
Action Forex says the overlap between Wave 4 and Wave 1 in both markets indicates they may be building nested wave structures rather than completing a simple five-wave impulse.
Action Forex argues that the long-term advances in the Dow Jones and in copper do not fit cleanly into standard Elliott Wave impulse labeling.
The outlet points to a key Elliott Wave rule, saying Wave 4 of a regular impulse cannot overlap the price territory of Wave 1 at the same degree, and it says that overlap is visible in both markets.
In the Dow Jones, Action Forex attributes the interpretive problem to overlapping price action within the advance from the 2009 Wave ((II)) low, while copper shows a similar structural condition in its advance from a 2011 cycle.
Action Forex concludes that the overlapping swings more likely reflect Elliott Wave “nests,” meaning the markets are forming sequences of first and second waves at different degrees that can set up later acceleration through multiple third waves.
Latest closeCopper $6.636 ▲1.0%|Dow Jones 53,975.98 ▼0.1%