Should the Dow go decisively through the 11120 level, today’s high, the triangle becomes uncertain and a simple a-b-c might fit the picture better. Then we could go another 400 points higher. For the moment I prefer the triangle.

MSN has a cleaner chart that is almost a tick chart. On that info the 600 point surge we had after the Fed rate-freeze announcement could be interpreted as a 3-leg affaire, rather than 5. If it was 3-legs the triangle is still a possibility and , in fact, more fitting. Today we would be in c which should be about 60% of the 500 plus drop yesterday so 300 to 350, then down again and up again. In the end e would end at about 11000, putting the target at 10400. If it happens it could start late Friday or the next Monday. Do not trade on this, it is just an educated guess to give a roadmap.

PS, The flat is not out of the running!

The B wave is somewhat larger than expected. Perhaps a little lower and then up in C after which the crash is expected to continue.

It is near impossible to get a tick chart, even on the internet, so I will use this one from Stockcharts. I suspect that we are in some sort of 4th wave of 3 of 3, this may be a wrong assumption but at least it give a road map.

Yesterday’s low was at about 10600.The rise thereafter was was good for 600+ points to about 11200. It is , I think, a 5-wave move, which immediately excludes the possibility of a triangle! This morning’s dive down was for about 400 points (very close to a normal Fibo 62%) to 10800. This corrects the euphoria created by the Fed acknowledging that we are indeed in BIG trouble. Next move should be another rise of about 600 points to 11400. Then down it goes again as we are nowhere near a bottom. We shall see.