However, things changed within hours, by the time the US market opened, the headline becomes 'Wall Street Slips as Hope Dims For Europe Deal'. Dow drops about 0.5% after 1 hour of trading.
Short-term swings can be that unpredictable.
Technically the Option 2 scenario is of higher probability as shown below.
Minimum target is 12,303, the high of mini-wave i. Maximum target is 12,928 for a 100% retracement for wave 2 before the wave 3's plunge.
In this Friday, France and Germany will go all out to create a legally enforceable "fiscal union" for the Eurozone that can effectively end the solvency crisis. "What we want is to tell the world that in Europe the rule is that we pay back our debts, reduce our deficits, restore growth" said Nicolas Sarkozy, France's President.
But it is going to be an uphill task to get the whole EU to adopt centralised controls over how individual countries set their budgets and how much they can borrow. There were talks that British would resist the "fiscal union" proposal.
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