Dow about to take a dive

Helicopter Dive

The entire formation from Mar 2009 to Aug 2013 has the right look of a idealized Elliott Wave major double zigzag correction.

Here is the textbook version of what this type of correction should look like. After a major correction such as this is completed we should expect the downwards trend to continue.

Elliot Masterworks double zigzag

Now look at the 5 year chart of the Dow Industrials.

INDU 29-08-13 5yr

On closer inspection at the  2 yr chart we can see that the Nov 2011 to Aug 2013 correction is best counted as a single zigzag.

INDU 29-08-13 2yr

For a longer term view of the entire 2000-2013 formation and the size of the upcoming correction please see The Coming Stock Market Crash