Dow - Be careful

Dow (20,606)

Dow dropped sharply on Wednesday. It dropped 372 points (-1.78%) at the close of the trading session.

I have mentioned in my May 14's article that I cannot rule out the possibility that Dow might have completed its wave (v) with a failure sub-wave v. With this 372 points drop, this possibility is only 200 points away. Once the Dow punched through the 20400 level, my reading is - it will drop another 2,400 points to 18,000 level.

And of course if it can hold above the 20400 level, it is still possible that this sharp drop is the mini wave 2 of its sub-wave v.

Keep your fingers crossed.

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