Bulls couldn't string it together and my call for a minor w2 instead of a larger w4 turned out to be correct. We broke down previous support and then came back up above it at the close. I'm still expecting a major breakdown day (about 10% in one day), and every day seems to be one day closer. Could be tomorrow? Only the market will tell.
For tomorrow I'm expecting a gap down, possibly below today's lows. Should we hold the 680 area overnight, then I expect any rally to be shut down at 690. If the market does manage to put in a reversal, it should be short lived. Since I'm sitting on a significant march put position, I'll be looking to start the profit taking hopefully tomorrow around 650 or lower.
The chart below is showing some additional channel lines that could provide resistance on the downside. As you can see, there is still a lot of downside to go.
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