Still a long way to go.

It may be good at this stage to revisit the long-term chart for Dow when the whole world stock markets are dropping like no tomorrow.

From the historical chart, as I have mentioned before, Dow is either forming a mega wave (IV) as shown below

Or, it is forming a major wave 6 as shown below.

But for both cases the medium term outcome is expected to be the same, Dow is heading for the March 2009's low of 6547 and lower.

Dow is somewhere at the mini-wave iii or mini-wave iv of wave 1 of a major down wave.

Looking at the above 'head and shoulders' formation', the Monday closing price of Dow has achieved the minimum target price. The next rebound can be a small mini-wave iv rebound before Dow moves to 10150 to complete its sub-wave iii. A possible wave count is as shown above. It is possible that the July 2010's low of 9686 can provide a good support for the completion of wave 1 of this major down trend.


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