Dow 30 Aug 01 to Aug 05 Outlook

Recap
US dollar trashed, but the stock market did not hold up. The correlation had broken down. The most interesting thing from last week was the waterfall formation that is so rare and so structured (tagged Y-2 perfectly) that we have to wonder this drop is planned all along.

Outlook
Waterfall pattern always go in fib waves count. e.g. 5, 8, 13, etc. We got 5 expanding drop last week. It has the potential of a bottom.

If we get a 1-2-3 buy off B-1, we get Y-1 and B-0 in no time. The rally will be faster than the drop.

The alternative is that we get 8 waves of drop in total. With the last wave of drop at 300 points. I cannot imagine how far this will go.

Hence, no long for me if there is no confirmed hourly trend reversal.