I would like to monitor Dow assuming that it is in a lower degree mega wave 6 correction as shown above until there are sign that this is not the case.
Under this scenario, the March 2009's low of 6547 is the major wave A of mega wave 6. The rebound since March 2009 is the forming of wave B that consists of 3 waves. So far wave 1 and 2 of wave B have been completed. as shown above. Dow is currently in wave 3 of B.
The last few days of consolidation and signal of a bigger magnitude pullback (Dow has dropped about 240 points after 2 hours of trading at this moment) has confirmed that the over-lapping, wedge formation pattern of the first 5 waves is a "Leading Diagonal" pattern as shown.
With this leading diagonal formation, the wave 3 of major wave B will take a longer time to complete, temporarily I put it at October 2010 assuming an "Ending Diagonal" with 5 sub-waves (i), (ii), (iii), (iv) and (v) for wave 3. Sub-wave (i) as shown on the 6-Month chart above, has been completed. Sub-wave (ii) can be completed within a week with 10320 as the support. Sub-wave (iii) is likely to start before end of August. Hopefully the wave form of sub-wave (iii) can provide a clear indication whether it is forming an "Ending Diagonal" to end the wave 3 by October or it is forming a normal zig-zag pattern with an extended sub-wave (iii), that may be able to drag the wave 3 until end of 2010.
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