3 Feb 2014

Fridays analysis was spot on.  The 4th time it tried to break support it definitely didn't hesitate to plunge.  I have targeted an area of 1720-1710, but one should be careful of a reversal.  Most of these acceleration are usually followed by an impulsive rally so if you have shorted near these lows I would suggest adjusting stops or be prepared to exit on any indicator that says its reversing.  I do however feel that there is one more stab lower and that could come as early as tomorrow or by Wednesday.  Either way there is not much room left for any downside short-term unless we free fall (Crash).  But indicators are positively diverging already and one must take this into account.

MT: DOWN
ST: DOWN
PA: DOWN

This is still in play...

An A = C EW Scenario would likely take us down to the 1720-1710 range for the SPX.