DOW, update

Using the same Bloomberg chart here is the (industrial Average);

DOW may 2 2012

So far it is the only one that is making a new high. Why it is in this unique position is not entirely clear. Perhaps they have taken the strongest measures to pump up their stock market, using both transparent and not so transparent means. We do know that the US Fed. is actually targeting the stock market, at least that is implied if the level of the market is used as a measure of the “success” of the Fed’s interventions. From an EW standpoint this should not have happened, or, alternatively the count is wrong. A double zig-zag could explain away the inconsistency (see alt a-b-c X a-b-c) but it is not very convincing. In any event as long as the Dow stays below the 2008 highs it remains likely that it too will fall in line with the rest of the markets.