We've seen a sharp rally on the Dow last few days with hardly any pullbacks. Ask any Elliotician and they'll tell you this is a typical wave 3 where price moves relentlessly upwards defying all overbought indicators.
At some point though the rally has to end and a wave 4 correction will occur. As wave 2 was typically a sharp spike down, then by the guidelines of alternation wave 4 should be complex so a triangle or zigzag formation etc. Another EW guideline states that if you draw an extending trendline from the start of wave 1 to the end of wave 2 then that often gives a target for the wave 4 correction as shown in the chart.
I'd be surprised if this wave 3 goes any higher to be honest due to the extremely overbought indicators on most timescales but you never know!
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