Dow - Possibility 2 becomes more likely

Referring to my posting on 13th October, I mentioned about 3 possible chart interpretations for Dow as shown below.

Since 13th October, we have another 5 new candlesticks added in, Dow has formed mini wave 1 & 2. Mini wave 3 is being formed and it has 3 candlesticks so far, one strong and two weak candlesticks. The 4th candlestick is being formed at this moment. After 2 hours of trading Dow dropped about 20 points, another weak candlestick.

In an up-trend, wave 3 is expected to be more dynamic and stronger than wave 1. Now we have a weak wave 3 instead, so the current mini wave 1-2-3 is likely to be a corrective wave. Thus 'Possibility 2' can be a more likely outcome. This can be confirmed if Dow goes below last Tuesday's 15,168 level in the next few days.

If it is indeed 'Possibility 2' then Dow is expected to complete sub-wave ii anytime and then proceed to form sub-wave iii, iv and v of wave c of major wave (6) that can stop at around 14,000 level.

And 'Possibility 3' cannot be ruled out at this moment.  Referring to the 8-Year chart below, I am talking about the mega wave 1 has ended in August and since then Dow has been forming the mega wave 2 that can go to as low as 6547 level for a 100% retracement.

But at this moment I think it is unlikely because (I) many investment funds and private investors are very cautious anticipating a 'Collapse" and are holding a lot of cash; and (II) All the central Banks are printing a lot of money and all these money has no where to go except commodities and assets including stocks.



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