DeMark D-Wave Analysis (Part 1)

Now that the SP500 has surged higher and the TD Sequential sell has been nullified, let's see if TD D-Wave can shed any light on this market action. I want to begin with the "big picture" and work down the time scales in subsequent posts.

Analysis of the yearly chart of the DJIA (not shown) has Cycle degree wave one (from the 1932 low) ending at the 1966 high. Cycle degree wave two ends at the 1974 low. Cycle degree wave three was shown complete at the 2007 high.

In my interpretation of DeMark's D-Wave I need to see every time scale correctly nested before I harden in a wave ending date. In this instance, before I concede that Cycle wave three ended at the 2007 high I need to see the Quarterly, Monthly, Weekly and Daily charts agree with that assessment.

The Chart shown today is the DJIA Quarterly. It shows that according to D-Wave, Primary three of Cycle three completed at the 2000 high. Primary Four at the 2002 low and Primary Five at the 2007 high. This time frame nests nicely with the Yearly. However, I have put Primary waves Four and Five in Gold because they don't nest correctly on a monthly scale while Primary wave Three does. I will look at the Monthly chart in my next posting.