Dow - When will be its next major correction

Dow (20,743)

When Dow continues to set new record highs, the rest of the major world markets will follow the Dow faithfully, moving higher. How long can the current up trend last ?

Lets look at Dow's long-term chart. The current up trend is the mega wave VII, started in March 2009 after Dow hit a low of 6,547. At its current level of 20,743, Dow has gained 216%.

But mega wave VII is very unlikely to be the shortest wave. If I assumed its percentage gain to be the same as that of mega wave I, the shortest wave so far, mega wave VII can reach 31,000.

Currently Dow is forming the major wave 7 of its mega wave VII. I expect Dow to complete its major wave 7 within this year. The next major correction for Dow is its major wave 8 pullback of around 15% before Dow has its major wave 9 surge to 31,000 level. I expect the major wave 9 to be a crazy, short and sharp euphoric run up with record volume. It should end in 2018. Be careful of the mega wave VIII correction, it can be anything between 40% to 60%.

For short-term, Dow is about to complete its minor wave v as well as its mini wave 3. Mini wave 4 correction is likely to take a week. It will be followed by its mini wave 5 run-up to complete its sub-wave iii.

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