Market movement today dipped below yesterdays target by about 40 points and then began the expected, and dramatic, upwards correction this afternoon. Based on both the traditional wave count and my experimental use of the harmonic wave method (harmonic count may be seen as green alpha-numerics on the charts) I am expected the DJIA to continue this afternoons rally up into the neighborhood of13,212 -13,228. This range corresponds with both a 161.8% extension of corrective wave ([a] black) and a 61.8% retracement of wave 1 (black and green). As this correction will be a second wave in this sequence it has the ability to move up towards the starting point of wave 1 (green and black) , though should not move beyond that point. Thus, invalidation for any continued correction in this count would come at 13,365. Wave two should finish its correction by this coming monday, as it would at that point reach 161.8% the length of wave 1.
From the Harmonic perspective,
intermediate (not shown in chart) wave 1 (green) completion should bear a Fibonacci relationship to wave C1 (green) as this is also wave A (green) of an A-B-C bear market pattern in the intermediate fractal structure.
After the market correction to around 13,220 completes, a very strong
bear market will ensue. I am roughly expecting regular single day drops
in the 70 to possibly 200 point per day range during that time.
-W
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