Dow surged on Friday, up 277 points or 2.2% to close at 12,880 level when the European policymakers reached an agreement to allow European bailout funds to pump money directly into troubled European banks, rather than make loans to governments to bail out the banks. With this arrangement, the banks can then buy more government's bonds that are in trouble.
Able to borrow more money will only raise the debt levels and it will only make the debt problem worse and nothing else. I don't think the surge can last. The potential of a financial meltdown is still there.
My two possible options for Dow remain the same.
For option 1, this run up will complete the mini wave (ii)
For option 2, it will complete the mini wave b.
Seahorses
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