DIA (Diamonds), the ETF for DOW Jones Industrial Average, Week chart shows price is at a completion of a harmonic pattern, colored red and called a Deep Crab.  There’s a couple of noteworthy observations, the first being that this completion of the brown Crab is also the 3rd of 4 legs of a blue colored emerging pattern.  The second observation is if the brown Crab goes into Retrace Mode, ie in this case means to head to the downside, it has the blue zone GRZ (Golden Ratio Zone aka the area between 38.2% to 61.8% Fibonacci’s) as the ideal minimum target, this region will also be a validation of upside bias so below the GRZ will increase the probability of playing out the olive colored pattern, ideally looking for 133.02 region.

DIA Week Chart

For a closer look at what’s going on at that PRZ on week chart, I’m looking at an Hour chart.  The dark red zone represents that PRZ.  As you can see price is in decisive mode, this is indicative when there are opposing emerging patterns.

DIA Hour Chart

The bottom of the red Bat PRZ is currently being tested, a good gauge is 200.58, above there with conviction increases the probability of testing all levels of the Week chart’s PRZ.  A rejection of 200.58 or more important hold below 199.91 increases the probability of pulling back into support with 198.5 area being of interest but the ideal target is to complete the Butterfly at 195.53.

So how this Hour chart plays out will offer insight to what happens in Week chart.

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