Dow dropped 244 points on Friday, this may appear to be a non event drop of only 0.88%, but from its Wednesday's intra-day high of 28,364 to its Friday's intra-day low of 27,487, the drop is about 3.1% which is significant enough to knock out two of my three options mentioned on 9 September.
Now I am left with the option of a higher degree 14.5% major wave 2 pullback to the wave (iv) level of 24,971.
The next major wave 3 up trend is very crucial. A major wave 3 of a mega wave (3) movement is expected to be very dynamic accompanied by very high volume, an unmistakable bull run. But if the run-up has non of the above mentioned characteristic and it failed to break its previous record high of 27,568, be prepared for a more than 50% super wave VIII correction.
Under this condition, the previous record high level of 27,568 marked the end of super wave VII. The subsequent 38.4% correction is the wave A of super wave VIII. The non event major wave 3 run-up that is unable to break the 27,568 level is the wave 3 of B of VIII.
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