Squawk Evening Update: Knock Three Times on the Snow Line

After being rejected following a brief excursion above the 1932 FibGrid snow line on Monday, the DJIA made two more forays above this significant level on Tuesday and was similarly rebuffed.  The last attempt managed to make a new high and several Fibonacci levels nearby that could indicate  a turn is nearby.  We’ll cover some of these levels  in tomorrow’s briefing; if you want some practice in the techniques we presented in our Fibonacci article, you can try to draw some levels yourself overnight.   It’s not clear that the wave structure over the past few days supports a turn here, but it’s equally difficult to see support for significantly more upside.  We see the possibility of a few ending diagonals that may help explain things and we’ll show those in tomorrow morning’s briefing.

The Euro seems to be consistent with our outlook this morning.  The move up at the time we published continues to look like the first wave of a five-wave move up.  If so, then we may be in the early stages of the fifth wave of this move, or perhaps in a developing fourth wave.  If so, these five waves up could be ending move up.  We’ll also look more at this count tomorrow morning.

Today’s continued drift up underscores why we continue to look for confirmation even though this move is quite extended.  Have a good evening and we’ll be ready for more fun in thr morning.