The DJIA is on a different wave count due to the secondary peak being much lower than a potential wave 2 in Minor degree. To call this secondary peak a running pattern is also pushing it, at least for the short term. Running, flats, triangles and running zigzags do happen, and they happen more frequently than most would expect. I don’t believe in calling something a “Truncation” (shortened pattern), when so many running patterns do occur. I’m working a Minute degree 5 waves down with a potential 4th wave peak still to play out. Any 5th wave decline could fall and stretch very deep and shock investors as the reality of a bear market starts to sink in.
Many investors have never experienced a major bear market so a deep 60-70% correction is unthinkable. First, they called for a 10% correction, then they were calling for a 40% correction with the latest call I read about was a 60% correction. (Fibonacci .618). Ok, when this happens then what? Is a 60% correction deep enough for a Cycle degree correction to complete? At this time I doubt it very much. History has given us many bear markets, with the GSC degree wave 2 decline only lasting about 8 years. The SC degree crash from 1929-1932 only took 3 years to play out. Cycle degree wave 2 took 5 years, and Primary degree wave 2 took another 5 years ending in 1974-75. I don’t see a Cycle degree correction (bear market) take longer than 3 years.
There are no fixed time lengths for any degree as we also have seen a 20 year Primary degree bear market in gold as well. I love the Fibonacci sequence for turning times with 2021 being a full 89 years for the next potential bottom. Even 1929 to 2018 is already 89 years long. The reason I focus on 2021 is because of a silent force when one solar cycle ends and another solar cycle starts. Solar cycle starts will terminate all your bearish thoughts as another 8 year bull market should develop once solar cycle #25 kicks in.
The DJIA peak of 26,600 may be the high of 2018, and when investors realized their gains are pathetic or in the red and losing money, they will hit the sell button before they click the “Buy” button.