Saturday, November 19, 2011

Dow - Lower resistance broken



Dow finally moved out of the wedge on the lower end, chances is getting higher that the October high is the end of wave 2. With the mini waves i-ii, 1-2 and a small one dot-two dot, if this is the right interpretation, the next down trend will have to be a dynamic sharp drop to confirm that the wave 3 is unfolding.


I still cannot completely rule out the second option as the last mini wave e of the a-b-c-d-e corrective wave can either stop short or overshot. Try to look for confirmation next week.


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