DJIA Potential Counter Rally

As much as this decline was a surprise to most, we could be setting up for a wild counter rally that can take us right back to the 26,300 price levels. I may be wrong, but the bears could be in a mini bear trap as I post. Either way the start of this decline has the makings of a diagonal decline and if it is real, then it must “NOT” charge to a new record high again.

Investors and most experts have no clue how big this next bear market is going to be as they keep talking about, “Buying the Dips”. No worries as many experts say a simple 8% correction will happen and then off to new soaring highs. Good luck with that as the contrarians, I trust, look at a 70% correction.

Even the expert wave counters have very bullish wave counts and they see no 70% decline at all.  At a bare minimum, we should see the DOW drop below 15,000 which is just one previous 4th wave bottom.

In order to really qualify this Cycle degree decline, the DJIA must fall anywhere between 14,000 and 6500 to be considered the previous 4th wave of one lesser degree.

The VIX has also made a very violent move just short of the $18 price level ending with a very vertical spike, so the VIX could also be telling us about an impending counter rally.

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