Dow - Where are we now?

Dollar Index dropped below the 73 level early in the morning.
Bernanake in the Wednesday press conference still maintained that his aggressive money printing action was to control inflation, strengthen the dollar and to promote job growth. I simply cannot understand his logic.



On a more optimistic wave count, I maintained that Dow is at the tail-end of wave b of the mega wave 6 as shown above. The next wave c is likely to bring Dow back to 2009's low of 6,547 or lower.



Dow is on its way to complete its sub-wave 7. If sub-wave 9 is missing, which is possible to happen at a major turning point. Wave b will end at sub-wave 7. Dow will turn down together with Nasdaq that has only 5 waves as shown in my previous post.



A more pessimistic wave count as shown below is to treat 2007 October's peak as the end of the super wave (III). March 2009 low is wave 1, Dow is at the tail-end of wave 2, the next down to 6,547 or lower is the wave 3 of major wave A. I am expecting a A-B-C-D-E super wave (IV).

The last surge is usually very tempting but very dangerous.

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