Dow (20,668)
Dow dropped 237 points (-1.14%) on Tuesday. Since October 2016, Dow has never dropped more than 1%. This is the biggest one day drop in 2017. Any danger? My answer is NO.
With this drop, I have no choice but to revise my wave count by pushing one small wave to sub-wave ii, making it an expanding a-b-c-d-e sub-wave ii as shown. With this adjustment I have two most likely alternative wave counts depending on Dow's movement in the next few days.
First alternative is a more bullish mini wave 2 for the current correction. Mini wave 2 is expected to be completed within one or two days. The next up-wave is the 3 of iii of (v).
The second alternative is a less bullish higher degree sub-wave iv correction. The next rebound will be the wave b of iv. Dow will go side way for a longer period before the sub-wave v starts to run.
The next major correction is the major wave 8, which is expected to be about 15%. If major wave 7 can reach 23,000, a 15% correction can mean a 3,450 points drop.
