An impulse-with-retracement (reversal pattern) appears to be in its final formation. The retracement may go to mid-cycle resistance at 2066.99 before resuming the decline, but may be stopped at the 4.5-year trendline. This is a perfect setup for a flash crash to begin on Monday.

The NDX formed a 9-wave decline (impulsive), so it is in agreement with the SPX.

The entire decline plus retracement will have consumed 86 hours by today’s close. The next impulse may be much deeper and shorter.

VIX is also in the process of forming a probable Wave (ii). This is what I had been looking for this morning, but came later in the day.

TNX appears to be forming a Wave (c) or c. We won’t know which it is until it is finished.

All of these indicators are pointing to a very strong decline ahead. Most likely starting near the close today or on Monday.

Regards,

Tony

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