Te problem with cycles is that they can be weeks out (ie bottom of 20wk cycle due plus or minus 2 weeks etc.
That two weeks can make a lot of difference.
It looks to me that we still have to complete wave 1 down fro 9046 and are presently in a corrective 4 which could go as high as 8470.
But there is resistance at 8442 and TWO Fib retracement levels there.
Waves 1 and 3 down are both exactly 312 points meaning 5 could well extend to anything up to 816 points.
This would not negate the cycle lows because of the plus or minus theory.
Add to this we had a KEY REVERSAL MONTH on the Dow then we are unlikely to be whipsawed to the upside.
The other theory is that the price action on the morning of 31/12 was an truncated fifth wave and that is usually followed by a sharp reversal to the upside.
I am out of the market at present until this unfolds
