Dow closed with 83.74 points up July 30

Dow put on 83 points at the close to move out of its last 4 days of sideway movement. For the next two months Dow is likely to complete wave 2-3-4-5 of wave (III) of Major Wave B that started in March 2009.

While I was waiting for a bigger and longer correction, Dow breakout from the last 4 days correction with 83 points up. If Dow continues to move up from here then wave 1 of (III) is not yet completed, very bullish indeed. Last 4 days shallow sideway movement becomes one degree lower sub-wave ii as shown below. Dow has just started sub-wave iii of wave 1.


However if Dow will to move down in the next two days, the 83 points up is wave b of wave 2 as shown below. The next two days down will complete the wave c of wave 2.