SPX has crossed beneath both its previous low and the Lip of the Cup with Handle formation. It may stop at mid-Cycle support at 1975.36, but not for long. The next real support is the 3-year trading channel trendline at 1900.00. Minor Wave 3 should expand considerably to a multiple of the length of Wave 1. A multiple of 3X, for example, would put SPX at 1750.00. I suspect it may be an even greater multiple, such as 3.382 or 3.5X, since that would take Wave 3 nearer to 1700.00.

At this rate, I don’t expect that to happen until Friday or so.

VIX has also had a breakout and may have yet a higher one before the day is over.

We are still very early in the decline. I honestly don’t think any large numbers of investors are worried yet.

Regards,

Tony

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