Thursday, August 18, 2011
Welcome to wave 3
The correction of wave 1 is likely over. Trading below 10,550, Dow futures, would be confirmation. We should be under 10,400 in less than a week. If the correction is still in force I will update this post by Monday when that should be apparent. You will notice that wave a and b are three waves and wave c is a 5 wave count that is pretty easy to see.
Wave 3 is usually the more violent of the waves being the point where people recognize that the trend has change and they try frantically to get out. I suspect that we will see a 1000+ point down day during this wave.