Mega wave 6

In my previous post I wrote about the completion of Mega Wave (III) at major wave5 and Dow has started its Mega Wave (IV) since the October 2007 peak.

It is also possible that Mega Wave (III) has nine waves instead of five waves, under this scenario as shown below, Dow is forming a major wave 6 instead of the Mega wave (IV). From 1937 to 1942 it was a simple abc wave 2, from 1965 to 1974, a complex abcde wave 4. Is is possible that the current wave 6 will take the form of a simple abc again.


Under this major wave 6 scenario, the drop from 9th October 2007 peak of 14,164 to 9th March 2009 low of 6,547 is the major wave A of the major wave 6 as shown below. Since then, Dow has completed wave (1) and (2) of the major wave B, Dow is currently in the up trend wave (3) of B. The chart below is showing a Zig-zag ABC formation for the major wave 6.


Even though there are altogether four types of A-B-C corrective waves but the fact the the major wave A has five waves, this major wave 6 has to be zig-zag formation. Wave B may reach say 11,500. If major wave C has the same magnitude as major wave A, it will go down to about 5500. However a failure C can stop near A, 6547 or event higher than A.

Zig-zag is the only A-B-C with 5-5-3 formation where A has 5 waves, B has 3 waves and C has 5 waves.

The second type is a Flat A-B-C formation as shown below. This is a 3-3-5 formation where A has only 3 waves.



Next two types are classified as Irregular A-B-C. The chart below is showing an Expanding A-B-C. This is also a 3-3-5 formation where A has only 3 waves.



The last type is the Contracting A-B-C, another 3-3-5 formation.



Since major wave A has 5 waves, the 'flat' and the two 'irregular' A-B-C can be ruled out. So if Dow is forming wave 6, it has to be a Zig-zag A-B-C wave 6.