Sunday, December 6, 2009

Dow - In major wave (IV)

In the last 5 trading sessions, Dow has no new development to its overall chart form. I still maintained that Dow is in its major wave IV. I don't think Dow can break its upper trend line.
Unless Dow can move above 10,500 next week, the likely wave count for Dow is as shown above. If Dow begins to move down starting next Monday or Tuesday, it will move down with a steeper gradient as it will be its 3 dots of sub-wave iii.

If in the coming Monday or Tuesday, instead of moving downwards, Dow moves upwards and break the 10,500 level, then, the above wave count of mine is wrong. Under such circumstances, Dow will be having its bullish wave 7 run up as mentioned in my previous post. Still have to wait for a few more days to confirm the trend.



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