Dow dropped 370 points (-2.4%) in the last three trading sessions to closed Friday at 15,081 level. The question now is whether the diagonal wave (v) has ended.
Option 1
If Dow can have a strong rebound in the next few trading sessions, the pullback so far still possible to be the sub-wave ii of wave 5/(v).
The coming rebound will complete the sub-wave iii of wave (v) and possibly the end the major wave (5).
Option 2
However, if Dow continues to move lower in the next few trading sessions, it is likely that wave (v) and major wave (5) has ended as shown below, and the pullback so far is the starting of major wave (6)'s correction.
I am looking at the 14,000 level as the likely support level for major wave (6), a 10% correction.
Option 3
The worst-case scenario is that the mega wave 1 has only 5 waves and it has ended.
In this case, mega wave 2 can go for a 30% to 60% correction, the bubble has finally burst.
Dow's direction next week is crucial, very very crucial.
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