It would close a gap and surprise many, for sure. And it would be followed by a very nasty move south.
If we continue to selloff tomorrow, then the count puts us in a 3 of 3 scenario, getting down to the 1300 area by early Thursday. It would look something like the steep, narrow channel I sketched last night.
By rallying tomorrow, we will actually make the next drop even more nasty. One way or another we want to bottom in the 1260 area by next week's full moon and FOMC lemon party.
|The deep wave 2 scenario|