My rising belief that we will revisit the lows again has increased dramatically over the last couple of days. Let’s look at two things quickly, the S&P 500 and a brief look at $AAPL. One of things we missed a lot of on the decent in January is proper, good old fashioned bearish structure. And in fact, to the contrary, we actually saw a lot of bullish structure on the way down. It’s fine to guess that bullish wedges will break down, but it’s hard to insist that they probably will, but now: now we’ve got some nice bearish structure.
This is a nice, big, beautiful bear flag, behaving much like I would expect one to. It could be done now, as of the close, as I’ve spotted an excellent fib. Blue “C” wherever it ends, should be two things: 1) it should be a 5-wave move, and 2) it should have a fib relationship with blue “A.” We’ve got both now. So, there’s a good chance we descend next.
Likewise, we have a beautiful bear wedge on $AAPL. And it’s already broken down nicely. It looks like it’s already attempted to retest the wedge, and that may be good enough.
In sum, we have an excellent setup for a drop from here, taking us to the 4000 area on the S&P. If not right away, then perhaps in only one more day or so, I would expect; but I have fairly high confidence that it’s coming quickly.
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