The picture says it all. We are in red wave III of which green wave (1) and (2) are complete. Green wave (3) has begun and completed its first subdivision red wave (1). Red wave (2) may be complete as of the 8th of September or that may be just be a bigger A-B-C which might actually take us upto 17600 and properly test the neck line of the head and shoulders pattern. A measured move from the neckline test would leave us at approx 13,200.
2 Scenarios:
1. If the market breaks below 16200 most probably red wave (3) has started.
2. If there is some kind of chop or indecision at 16200 we might be forming an A-B-C which should take us upto 17,600. and then we should see the big drop.
