Dow - Two possibilities


Dow (18,094)

Dow dropped 166 points (-0.9%) on Monday. With these two red candlesticks, the previous 7-candlestick of advance has only 3 waves, it has to be a corrective wave instead of an advancing wave. It has to be wave d. The current down can be wave e of sub-wave ii.



However, with this a-b-c-d-e formation, the magnitude of sub-wave ii becomes rather big and is approaching the magnitude of wave (ii). There is this possibility that the a-b-c-d-e correction can be a higher degree wave (iv) correction.


From the longer term chart (8-year) it appeared to me that it is more likely to be wave (iv)

Major wave (7) is likely to have nine waves.  
 
http://chanky50.blogspot.my/2016/09/dow-two-possibilities.html