Automatic wave scan: as of 6 Nov 2026, the automatic daily count for Dow Jones is Wave 4 bounce in a downtrend (possible diagonal) with a bearish bias. The count stays valid while price holds 54,744.
Current Dow Jones wave count
Automatic wave scan Updated daily from the latest daily close (5 Nov 2026). Computer generated from swing highs and lows, not reviewed by an analyst.
Automatic scan: price is in wave 4, a pause of a five wave decline that began at 54,744 on 5 Aug 2026. Next levels to watch are 51,886 and 52,085. The count fails on a daily close above 54,744.
Key levels
| Type | Levels |
|---|---|
| Resistance | 51 · 564 · 52 · 928 |
| Support | 50 · 547 · 49 · 909 |
| Invalidation | 54,744 |
What is Dow Jones?
Charles Dow and Edward Jones first published the Dow on 26 May 1896, with 12 companies. It grew to 30 companies in 1928. Unlike most indices, the Dow is weighted by share price, so a stock with a higher price has more influence than a larger company with a lower price.
Ralph Nelson Elliott studied decades of Dow data to develop his wave principle, which he published in 1938. This makes the Dow a natural market for Elliott Wave study.
What moves the Dow Jones price?
- Earnings of member firms: With only 30 stocks, each company's results matter.
- Economic cycle: The Dow includes more industrial and financial firms than the Nasdaq.
- Federal Reserve: Rate changes affect valuations and borrowing costs.
- Price weighting: Big moves in high priced stocks move the index more.
- Global trade: Many member firms earn large shares of revenue abroad.
How Dow Jones moves in Elliott Wave terms
The Dow's long history gives a complete record of super cycle waves, including the 1929 crash, the 1932 low and the long bull market since. Elliott used it to define wave degrees.
Because the index is price weighted, large moves in a single stock can distort short term waves. Use the daily and weekly charts for the clearest structure.
Tips for counting Dow Jones waves
Compare the Dow with the S&P 500. When both confirm new highs, the trend is stronger.
Dow Jones key facts
Dow Jones Elliott Wave FAQ
Why is the Dow price weighted?
It began in 1896 as a simple average of stock prices, and that method has been kept. Today a divisor adjusts for splits and changes.
Did Elliott use the Dow?
Yes. Ralph Nelson Elliott studied Dow data to build his wave principle in the 1930s.
How many companies are in the Dow?
30 large US companies, chosen by a committee.
Sources and further reading
- Dow Jones Industrial Average (S&P Dow Jones Indices)
- Dow Jones Industrial Average (Wikipedia)
- Federal Open Market Committee (Federal Reserve)
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