Dow closed with a new record yesterday at 15,460. Unfortunately the volume was rather low. With that I have to forget about wave (viii) that was expected to go to 14,300 level.
The magnitude of the last pull-back was smaller than that of wave (ii) & wave (iv), so it has to be something else. I am thinking of the following possible alternatives.
A) Diagonal Wave (v) :
The first option I have is a diagonal wave (v) as shown below, a rather bearish scenario.
Under this wave count, wave (v) as well as the major wave (5) may end by August or September, 2013. And if mega wave 1 has only five major waves, mega wave 2 correction will start very soon with possible 100% retracement to 2009's bottom of 6,547.
B) Parabolic wave (vii) :
The newly completed correction can be the sub-wave ii of wave (vii), since it is of a smaller magnitude, see chart below.
Sub-wave iii is in progress. It may punch through the upper trend line with high volume. Under this scenario Dow can run for another two years to the 20,000 level. Wait for the high volume and the 'punch-through' for confirmation.
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