A Volatile Monday

Beside the two explosions at the Boston Marathon

Gold plunged by 10% to its lowest level in two years with high volume.

Crude Oil sank to a 9-month-low.

And the Dow Jones Industrial Average dropped 265 points or 1.8% under heavy profit taking.

 

The reason - 

China's first quarter GDP rose 7.7%, 0.3% below the estimated 8%. It sparked a commodity sell off from investors. 

Or it is just another case of 

   

With money printing at full speed by the central bankers, I don't expect the asset bubble to burst at this stage.

Turning to Dow, the question is whether Dow can remain above its lower trend-line ?

If it can't - wave (viii) has started

If it can - wave (vii) has not finished yet. 

One more surge (or many more) to go.

The worst that can happen is a 7% to 8% wave (viii) correction.

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