Thought it was time to update my Dow Gann Fan/Bearish Butterfly...

Thought it was time to update my Dow Gann Fan/Bearish Butterfly models I’ve been tracking since about April 2016, with last post 12^th December 2016 as linked.

I’ve prepared my portfolio for a Dow top to occur anytime now regardless, or at least I hope it's prepared.

First chart below is a repost of my 12^th Dec Gann Fan to show context. Note that I haven't updated the labels/commentary but the index price is updated. The Dow is tracking along this Fan extraordinarily well. You can see as it has run along each fan line since the low in 2009, and drops to the next, that momentum is slowing. It’s come back up to the Olive fan line again, but I don’t expect that to break. With time it can run along further, as has been the case since I first did this chart, but nevertheless we’re at a pretty significant point.



Second chart below updates and zooms in to show the detail and levels of the Bearish butterfly pattern in Pink. Back in April 2016 I just assumed the Dow would top at the normal XA retracement of 127.2% Point D around July. However, time has been the variable factor, with the Fed holding up the market through to the November election, then the Trump/Xmas rally until present. The 161.8% retracement level on the Butterfly pattern, although unusual and a stretch, is still valid. So 161.8% or Dow 20,194 is the absolute top for this pattern to remain valid and we’re there now.



Third chart below just restates the Bearish Butterfly template.