Dow (27,940) - Three likely scenario

Dow rebounded 1.6% or 439 points on Wednesday. If Dow can continue to move higher in the next few days but unable to go higher than the 30,000 level, then very likely scenario 1 is the case.

But if Dow is able to go higher than 30,000 and when the magnitude of wave (v) is greater than that of the wave (iii) of +21%, and since the third wave of any five waves run-up cannot be the shortest, major wave 1 is likely to have nine waves. That will lead to scenario 2.

The third scenario is when Dow continues to move lower after the current rebound. Dow is forming its major wave 2.