Expect Correction Before Upside Trend Resumes

We have a similar situation in the Dow Jones as we find in the S&P 500. Any potential version of wave iv° looks too short to be complete right now. Moreover a closer look at wave ii° shows that we should expect wave iv° to be relatively shallow and complex due to alternation guidelines. We forecast an irregular flat pattern to form wave iv°.

We expect the entire correction to be between the 23.6% and 38.2% fibonacci levels of wave iii°.  This means a 2%-3% drop before the uptrend is resumed. For the moment we let the market do its work and let wave action play out.

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The irregular flat proved invalid with today's new high