The next downtrend ?

Wave of Clark Little

Dow dropped 120 points (-0.93%) on Friday.
Can this be the starting of the next downtrend ? Possibility is great.
For both 'Option 1' and 'Option 2', the last sub-wave ii rebounce was a 100% retracement to the 12,943 level.

For Option 1, once the index punches through the lower resistance line and goes below its previous low of 12,573 level, the sub-wave iii of wave (iii) of major wave 2 may go down at a faster pace (iii of (iii)). Theoretically major wave 2 can go for a 100% retracement (worst case scenario) and that is 6,547 level, March 2009's low.

For Option 2, a possible wave vi pullback with a simple a-b-c correction. If wave c takes the same magnitude as wave a, Dow can go as low as 11,765 level.


Lighter Mood

A man was granted two wishes by God.

He asked for the best drink & the best woman ever.

Next moment he got mineral water & Mother Teresa

There are 3 kinds of men in this world.

Some remain single and make wonders happen.

Some have girlfriends and see wonders happen.

The rest get married and wonder what happened !

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