With today's close levels, both the Dow and The S&P have retraced 50% of their losses in this latest 2 week correction (starting Oct. 12). Would this signify the end of the b leg in the abc correction? This is following the exact same pattern as the mid August correction.
What I see is Dow trending down and will test 13160 which will coninside with 61.8% retacement from the 8/16 low to 10/11 high. And that is the maximum down for Dow as far as I see it. Long term, I see it hitting 17000 by 2009. The bull market is not done yet, it started back in Aug 1982 and it has to finish its cycle.IMO
Maybe it's a failure of imagination on my part, but all I can see is wave b as the upper line of a flag. The question is whether it is at 1/2 mast, 3/4 mast or towards the bottom as westwoodguy suspects? Don't know. But we could be in for one hell of a ride next week. I'm sure the Feds will ride in on their white stallions and try to fend it off. They always do don't they?