When Uncle Sam sneezes, the whole world catches cold.

When Dow dropped another 1175 points (-4.6%) on Monday after its 665 points (-2.5%) drop on Friday, Major Asian and European markets dropped in tandem on Tuesday.

At this moment all Asian markets have closed while the European markets are not yet close.

Dow (24,345)

As I have mentioned previously, very likely Dow has ended its major wave 7 and is having its major wave 8 correction.

From its peak of 26,616, Dow has dropped 2,271 points or -8.5%, half way through the correction, wave A is about there. Next rebound can be the wave B.

By now I can eliminate the sub wave vi's option that I mentioned previously but I still cannot eliminate the wave (vi)'s option especially if Dow can have a 'V-reversal' and can continue to run higher with more record new highs.

One thing is for sure, this is not a market collapse and the assets bubble is not going to burst at this moment. The worst that can happen is a 15% correction and we have already half way through. More optimistic is a wave (vi) correction that is almost completed.

This is just a healthy correction but do remember anything can happen in the stock market and I can be wrong too. This is only my current opinion based on the current data that I have.