Dow has just closed with a 70 points up for its Thursday's session at 9350, its third advance since Monday's 186 points drop. Monday's low has to be sub-wave c. The magnitude is rather small at 2.8% instead of the anticipated 3.5%. As mentioned in my August 15 article "Dow-Recap", this wave 2 can take the form of either a-b-c or a-b-c-d-e.
For a shallow a-b-c wave 2, last 3 days can be the beginning of wave 3 as shown above. However, if Dow goes for a longer a-b-c-d-e wave 2 formation, it is possible that Dow has just completed its sub-wave d as shown below and is likely to turn down from here to complete its sub-wave e in the next 2 to 3 days before the starting of wave 3.
For a shallow a-b-c wave 2, last 3 days can be the beginning of wave 3 as shown above. However, if Dow goes for a longer a-b-c-d-e wave 2 formation, it is possible that Dow has just completed its sub-wave d as shown below and is likely to turn down from here to complete its sub-wave e in the next 2 to 3 days before the starting of wave 3.
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