I have a pet theory that I have been noodling around with for awhile. One of the major tenets of Dow Theory is the idea of
confirmations [that the continuation of uptrends and downtrends need to be confirmed by both the Industrials and the Transports (both making higher highs or lower lows together)] and
non-confirmations [when divergence between the Industrials and the Transports take place (one makes a higher high / lower low while the other does not) it often signals or foreshadows a major trend change]I have been watching the Transports start to make much different wave patterns than the Industrials at the Intermediate Degree for months. But I was confused because I thought the January top was likely the top of Primary 2.
But as of a couple of weeks ago I abandoned that idea and I now have a projection of how P2 can work out from an Elliott Wave perspective and still fit with the non-confirmation idea from Dow Theory.
