This record peak that the media has beat to death for months, has finally reversed. Just a “correction”? Sure, a Cycle degree correction that could see the DJIA crash down to 7100! Is that the type of a correction you were looking for? What this peak contains is an expanded top which would be the lead-in to an “A” wave bottom in Primary degree. After that bottom gets confirmed, then the rest of the pattern will just look like a giant zigzag. 5 waves down in Minor degree is what I will be looking for, which would finish the “C” wave crash that has started. Moves like this can extend beyond reason or beyond what anyone expects at this time. I target 3-degree levels higher than Cycle degree and 3-degree levels below Cycle degree, and until Cycle degree wave 5 is completed, the largest corrective degree I can have is Primary degree. Many other asset classes have already hit a Cycle degree wave 4 bottom, but the markets are still 3-4 years from doing that. 2022 would be the target date. You will get a few guys that will constantly fill you in why the markets are heading down, but they can use the same excuse or reason when the markets go up.
Still, we need to give it all a bit more time and distance to make sure the markets mean business this time.