Tuesday, September 8, 2020

Dow (27,500) - What degree of correction?

Dow dropped another 632 points (-2.25%) on Tuesday after a long weekend. With this drop I can rule out the two more bullish options and I am left with two other remaining options that I mentioned over the weekend.

The more optimistic sub-wave iv pullback is about to end. Another minor wave iv rebound and another drop to 27,400 level will complete the sub-wave iv.

A higher degree correction is the 14% to 15% major wave 2 correction. In the current down trend, Dow is forming the wave A of its major wave 2.

I expect the major wave 2 to stop around the 25,000 level.


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