We are now looking like a Wave 4 of 1 with wave 5 of 1 coming up. That should target about 1040.
My current guess is 1040 late October/early November, then an xmas rally for big wave 2 up. January sometime would start the disasterous wave 3 down.
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Key Levels;
Upside -- 1186, 1206, 1220
Downside -- 1163, 1150, 1121, 1102
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SPX Daily;
So there we are, still in the wedge and channel.
Ugly candle though, certainly the type of selling I would expect to encounter as we kick off wave 5 of this first big primary wave 1 down off the top.
The market absolutely has to hold 1150. 1150 getting broke on a close will cement a trip to the low 1000s.
That's about all for today, the lines in the sand are right there, big sell off day, I would guess we are going to break south here. If this is a wave 4 of primary 1, it is long in the tooth and it would be about time to start wave 5 of primary 1 down.
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One other note.. despite the big down day.. almost all the individual momo stocks I mentioned yesterday closed down only slightly.
An interesting note to that though.. they all broke out higher intra-day, a couple making new all time highs intra-day.. then they all proceeded to sell off down below the resistance they closed below yesterday.
I think a lot of these (AAPL, AMZN, CMG) may have seen their tops for awhile today.
Time will tell.
GL
CJ
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