After CPI we had a 100 point drop (so far). This opens the possibility to a larger C wave down to 3750 and the previous structural trendline. With the dramatic move starting today, I would guess a C wave down is the obvious choice. Keep in mind the market may look like it's crashing, but C waves would be a buying opportunity towards the end of the move.
Comment:
should bounce here
Comment:
minor bounces will get sold into, don't expect much of a bounce in this C leg - they are not going to allow longs out or shorts in - that's why it will get intense towards the end of the move - a mini capitulation will end it.
Comment:
we're close to strong support, put some money in my pocket in case of a bounce larger than I expect.
