The concern of subprime fear on economy resulted Dow Jones Index (DJI) loss 283 points loss for 24/7 market day, which was translated into a negative sentiment on economic outlook again.
But looking at DJI Chart, It had broken the downward trend line (sloping downward trendline) in past few days rally. It does normally denote the change of direction, which is from downward to upward in this particular case.
If this turning point is strong enough, DJI may repeat the pattern shown in the left box, which shows the next wave is higher than earlier wave pattern.
And the most important is, for every small wave correction, it took around 4 market days to complete. Using this to translate today correction, DJI may srping up again in somewhere around end of next week, ie. somewhere around thursday or friday.
Then the next wave will be higher than current wave.
If DJI is dropping below 11,000, the above theory is no longer applicable, which denotes a breakdown, a serious correction ahead.
But looking at DJI Chart, It had broken the downward trend line (sloping downward trendline) in past few days rally. It does normally denote the change of direction, which is from downward to upward in this particular case.
If this turning point is strong enough, DJI may repeat the pattern shown in the left box, which shows the next wave is higher than earlier wave pattern.
And the most important is, for every small wave correction, it took around 4 market days to complete. Using this to translate today correction, DJI may srping up again in somewhere around end of next week, ie. somewhere around thursday or friday.
Then the next wave will be higher than current wave.
If DJI is dropping below 11,000, the above theory is no longer applicable, which denotes a breakdown, a serious correction ahead.
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