Speaking of wedges, the DOW itself is displaying one that is almost as beautiful as the one on the CAC40. If there is a small triangle in the 4th wave position in this wedge, then it could be argued that one more minor leg would be required to complete the pattern, either with or without a slight throw-over. Again, as with the CAC the initial target would be the base of this structure, about 600 points lower. The charts below show how this wedge, always a 5th wave, fits in the big picture.
It would be the 5th wave of c of an a-b-c that is itself the larger B-wave. Interestingly, the low was at 6547 so the Dow has risen 10521 points so far or 160.7%. This is very close to an ideal Fibo number, which would suggest a top might occur at about 6547×2.618= 17140. That is only 66 points higher than yesterday’s high so this could be accomplished in less than a day. To read why this market might just be a little overvalued I recommend reading http://www.hussmanfunds.com/ ‘s latest article about delusions of the perpetual motion machine. Here is one person who does not quite agree with Janet Yellen’s view that this market is not overvalued!