Dow may surge next week. 3 of iii.

Dow dropped 152 points (0.97%) on Thursday, the rest of the world bourses followed.

In Asia, at the closed of the Friday trading sessions, indices fell from 0.5% to 1%.

In Europe the indices dropped about 0.5% to 2% after the morning session.

Dow was in fact opened on the positive side after the European Central Bank cut its key interest rate by 25 basis points to 0.25%. However,  Dow started to drop when a better than expected Q3 GDP reading (2.8% versus 2.5% Briefing.com consensus) was announced. The market was worried about the possibility of an earlier QE tapering.

I personally don't think that the US$85 billion QE programme will be scaled back before Bernanke steps down next January.

Dow gained about 80 points after one hour of trading. Is this the starting of mini-wave 3 of sub-wave iii ?

 We should know the answer before end of next week.



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