Dow regained 477 points or 1.9% on Friday after plunging 1,861 points (-6.9%) on Thursday with very high volume of 647 million, plenty of selling, panic selling.
Friday's rebound is likely to be the wave ii rebound of the wave C. The next wave iii drop is expected to be more damaging with even higher volume.
If the current rebound is able to move above the previous high of 27,574, the wave (iii) of B may take the form of a diagonal wave to complete the wave B with a 'double-top' reversal pattern as shown below.
The unlikely mega wave (3) option still cannot be ruled out at this moment especially if Dow is able to hold above its wave (i) high of 24,764 to form a a-b-c wave (iv).
This mega wave (3) option will be ruled out the moment Dow drops below the top of wave (i) of 24,764 level.
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