Dow now ready for trade-able sucker's rally to 15940.

In this post I modeled the next move for the Dow to be down to around 15480.  Looks like my model is correct this time.   Since we have now done the 5th wave throw under I would expect a very trade-able sucker's rally back up to the level of blue 4 which is about 15940.  It could take a couple days to play out.  Trade it if you like but I would avoid the urge to turn bullish.  This is likely (always remember this is about odds folks, not certainties), a 4th wave bounce with a lower low to follow in the form of a 5th wave down.

I want you to notice how erratic the chart is becoming.  This is generally a sign of nervousness in current direction.  The bears are getting nervous that their luck might be running out.  The bulls are wondering if it is time to buy the dip again as they have since 2009 and they have won with that strategy most of the time.  What the bears need right now is 5 solid waves down and so far we only have 3.  Don't expect the bulls to give up easily!  I think the trend is down now.  IF you get caught in a trade then do not panic out of it if it goes against you for a day or two.  Be patient as long as you are not over leveraged.  And before there is good confirmation of the major trend change (which we have not received yet!) you should minimize leverage.  Trust me, there will come a time when massive leverage makes sense - a window of time.  But this is not it.  Not yet IMO.  But soon.