Dow continues to move higher on Wednesday morning, it put on 40 points to 14,294 after one hour of trading. It has 300 points to go before reaching its upper trend-line at around 14,600 level. That can be the end of sub-wave v.
If wave (vii) has 9 sub-waves, then the next pullback will be its sub-wave vi, a 50 to 60 points drop.
However if wave (vii) has only 5 sub-waves, then the next pullback will be wave (viii), a 8% to 10% pullback. That will be more than 1200 points
Dow needs another 5 to 6 months to complete its wave (vii), (viii) and (ix).
If mega wave 1 has only 5 waves, 5 to 6 months from now can be quite dangerous. But if mega wave 1 has 9 waves, then the catastrophic mega wave 2 correction will have to wait until 2015.
One thing is for sure, the market has to be euphoric before the plunge. The big fishes will have to make sure that all the the small fishes are in before they stop the music.
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