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.
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