Don,
My expectations for a rally from Friday's open were wave count based, which said count proved to be incorrect. At the time, I also felt all my downside projections had been met from the topping patterns formed on 7/20. As you would expect, Friday's action forced me to dig deeper, and alas, I've come to the conclusion that the bears will have the market well in hand until late Wednesday.
1075 on the SPX is a very realistic and I think, probable target for this move lower, based on pattern projections, wave counts, and the "3 peaks and a domed house" theory. If we get into a panic driven crash, this target area could be overshot by a bit, or the market could always pull up short of it by a few points. But I think all buyers in a 1 % range of this level will be richly rewarded in the coming weeks.
Regards,
David
P.S. I guess it wouldn't hurt to short bounces on the way down there either, oui? |
