Price is winding up a retracement wave in advance of a third leg down to new lows. The Dow could conceivably rally 500-1000 points higher before turning back down as two Fib retracement levels converge right around 34100. Alternatively, the next leg down can be triggered by a random geopolitical event occurring anytime, including while our markets are closed. The most likely pattern unfolding is a series of Waves 1-2 in advance of a devastating Wave 3 crash. This is a rare event, often predicted but almost never fulfilled. Despite those odds, the pattern is there and price is about to retrace multiple Fibonacci reversal levels between 33,690 and 34,110 which key off of the first two down arrows on the chart. The higher this counter-trend retracement, the bloodier the aftermath. The Dow should break below 30,000 before March 18th expiration. How and why it gets there is anyone's guess.
