The ALSI has corrected it's initial impulsive decline and has retraced just over 61.8 % (cash).Many market participants consider the decline to be over and that the bull market is back.This is exactly the sentiment that should be generated at the top of wave 2.If our wave count is correct the downside risk over the next few months is enormous.The 200DMA (blue line on daily chart) may provide temporary support over coming weeks but our wave 3 target is the previous 4th wave around 30000.This is also the area where wave 3 would equal 1.618*wave 1.
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