Sub-wave iii of major wave (II) has started

Dow came down 2.3% and Nasdaq came down 3.3% at the close of Monday trading. Last Friday 'Doji' candlesticks for both the indices marked the end of sub-wave ii as shown above. My expectation of another one or two more days of up for sub-wave ii was short-circuited by the announcement by World Bank that the grobal economy will shrink by an estimated 2.9% in 2009. Sub-wave iii has started, most likely it will stop at 8200 for a sub-wave iv rebound. As mentioned in my previous post, if Dow is going for an 'inverted head and shoulders' formation as shown in my previous post, this major wave (II) will have to reach somewhere near 7400.