it has established a significant reversal pattern
it has dropped us 31 handles off the current all-time high
it has not left any gaps in the chart.
A gap down in the morning on GDP becomes an important target for a wave 2 retrace in mid-April. The 200 DMA is within reach now, and I think we can tag it next week, which is an important technical development. Please note that the McClellan oscillator is already very negative, so that a swift drop to the 1760 SPX area will send it into sorely oversold territory.
The bounce off the low should be truly special. After that bounce tops out, we go after the trendline between 1074 and 1343 SPX. We will bounce off that and pierce it on a 5th wave.
But first let's see if we get our morning gap down here. The first goal would be SPX 1815, the target of the obvious head & shoulders with the 1850 neckline.
Hey, you noticed the death-cross on the 10Y Treasury yield that is now imminent, right? With QE out of the picture, the only way rates can get to my sub-1% target is by PANIC and TERROR in the equity markets. May it ever be so.