Dow (23,764) - Still on its B wave

Dow dropped 457 points (-1.89%) on Tuesday to take the course of an a-b-c for its wave (ii) formation. Wave c is likely to end around 23000 level.

Based on the current social, economic and political situation especially the tension between China and the US, Dow is more in favor for a wave B formation. The next wave (iii) climb is going to be a weak run-up with low volume for this wave B formation. It is likely to end somewhere between its previous high of 24,764 and 25,500 before the damaging wave C of super wave VIII starts.

Another seemed to be impossible option at this moment is the mega wave (3) of the super wave VII formation for Dow that I have mentioned before. Very very unlikely but technically possible.  

Stock market is always full of surprises. Who can foresee the Covid-19 black swan before it arrival. Exactly 3 months ago on February 12 when Dow set an intraday historical high of 29,568, who can expect to see in the US the Covid-19 infected cases can reach 1.4 millions with 83,400 deaths by May, and unemployment rate exceeding 20% with 26.5 millions job lost.

Who would expect Warren Buffett, who told Yahoo Finance editor-in-chief Andy Serwer in March, "I won't be selling airlines stock," (after Berkshire Hathaway purchased an additional 976,000 shares of Delta Airlines at about $46 a share on February 27), told Berkshire Hathaway shareholders on May 2 that he had sold all of the company's airlines stocks (Delta, Southwest, United and American Airlines).

This is why the market can survive for more than 100 years. At anytime under any condition whether the sentiment is bearish or bullish, there is always a buyer and a seller to complete a transaction.