My current wave count requires another minor shift down in the DJIA to around 13062, before pushing up one last time to about 13221. These two movements should constitute wave iv and v (blue). Upon the completion of wave v (blue) the correction will have also completed wave C (blue) and wave 2 (black).
I am limiting the upward potential of this correction because 1.618 times the length of wave A (blue) is too far above the likely resistance point. Instead, I am placing the resistance point at the point where both wave A (blue) and waves i - iii (blue) have an identical Fibonacci relationship in the price level.
The grey space is my expected containment area for wave iv (blue). The pink rectangle is the expected termination point of wave v (blue). Movement beyond this point would likely reach at or slightly above the beginning of this wave pattern around 13296. However, the DJIA has adhered less strictly to a proper wave count than has the S&P500 or the Nasdaq Composite. Resultantly, movement of wave v (blue) to the top or slight above the starting point of wave 1 (blue) will not invalidate my expectation of a strong downward 3-wave (black), unless there is a substantial permanence above that point across all of the indices.
-W
12:11AM
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