Dow - Same old question,"Has wave 2 ended?"

When I thought I could rule out the option 2 mentioned in my November 17 post, the 490 points surge on Wednesday has restored this option 2 scenario as shown below.


Yesterday the 4.2% surge stayed short of breaking the upper trend line. Once it is broken, Dow is likely to go for another 800 points run for a 100% retracement to form a 'Double Tops' reversal pattern. That may mark the starting of the wave 3 bear run.

Some have ask, "Can this be the bottom for Europe?"
Nobody can rule out this possibility. In another 12 months time when we look back, then only we know. At this moment when 'there is a strong possibility that the Euro will collapse and Europe will disintegrate' can be the worst time for the European markets especially if both Euro and Europe can survive.

But chart wise, I still like to maintain the major wave C scenario until such time that it can be ruled out.

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