Dow - The current pullback

Refer to my June 3 posting, my hypothesis for both option 1 and 2 remains valid.

For option 1 scenario, wave 2 of mega wave 7 will take months to form. Assuming a simple A-B-C formation for wave 2, the index has just completed its mini wave (i) and (ii).

For option 2, it has completed its mini wave a and b, mini wave c is likely to bring the index to about 11,500 level to complete sub-wave vi.

During his quarterly press briefing last week, Bernanke is expecting further slowdown in the US economy. China economy continues to slow further and European debts crisis is getting from bad to worst, Greek's problems remain unsolved and Spain is attracting attention with its record bond yields. With all these bearish factors Dow is still able to remain within 10% of its historical high, supported by all the money printed.