K Wave, thanks for the comments. Yes, the "B" wave size and structure is very much up in the air at this point and depends a great deal on what the Fed does in reaction if the nasty drop that I expect in the next month or so develops. In the past the Fed has been quick to step in and pump if the markets swooned. That's why I showed a big "B" wave.
Instead of big, maybe the "B" will just be complex. The small "B" that you show would indeed be very bearish and would make the "4" of previous degree 2020 bear market low target for the next wave down very viable, but again this much market devastation would surely bring out the money pumping Fed to stem the tide. I just don't trust anyone with that much green ink, fine paper, a turbo-charged printer, hubris and a complete disregard for the intrinsic value of money to sit idly by while their secret third mandate gets hammered.
Regards,
Douglas