Dow gained 378 points (+1.35%) on Monday, that is only 1,260 points away from its February 3's record intraday high of 29,568.
If the current run-up is the sub-wave v, very likely it will end around 29,800 level to complete Dow's wave (v) as well as its major wave 1. Major wave 2 is expected to have a 16.2% pullback to around the wave (iv) level of 24,971.
However if Dow can punch through the 29,800 level in a dynamic way with high volume of more than 500 million, then the current run-up is more likely to be the mini wave 3 of its sub-wave iii.
This is a very bullish scenario where sub-wave v may end somewhere around 34,400 level to complete the wave (v) with 37% gain.
This 37% gain for wave (v) will lead us to another outcome. As the wave (i)'s gain is 36%, wave (iii)'s gain is smaller at only 21% and wave (v)'s gain is higher at 37%. According to Elliott Wave Principle, the third wave in any five waves run up can never be the shortest wave, this implied that the major wave 1 will have nine waves instead of five.
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