Dow put on 235 points (2.8%) on Monday

Dow's 235 points up (2.8%) on Monday is bigger than what I have expected and has temporary reversed the downtrend set by the first 5 mini waves that I have mentioned two days ago. It appears that the current uptrend is being prolonged for a while.

As for the technical indicators, as usual they will swing together with the index.

After forming the 5 mini downtrend waves, I was expecting the Dow to break through the lower trend-line but instead of that, Dow has a candlestick that has recouped 75% of the losses caused by the 5 mini waves and at the sametime ruled out the expected downtrend waves i-ii-iii-iv-v that I have mentioned previously because the 'iv' rebound can not be so big that it overlapped 'i'. As shown below, the current uptrend is still remained intact.

The uptrend cases of either (I)-(II)-(III)-(IV)-(V) formation as shown above with Dow currently forming wave(V) or the 1-2-3-4-5-6 formation as shown below with Dow currently forming wave 7 (same as KLSE Composite) are more likely. Traders that have cleared out can move in again for another round whereas medium term investors can clear more stocks at better price.

Meanwhile keep an eye on the lower trendline for a break down in the uptrend. The balance of the uptrend journey is expected to be short.