As I stated in last nights blog post, "yesterday's rally puts pressure on the count to perform to the downside tomorrow in a big way or it is appropriate to discuss some of the alternate counts. If you missed the call, click here.
Since the market didn't follow though to the upside and fell hard, my preferred count remains that of a fifth wave decline while remaining nimble enough to recognize that the alternate counts presented in last night's blog post would be deployed should price exceed 1190.
And here is the 240 minute chat level. For tomorrow, the count implies a 3rd of a 3rd and therefore we MUST see a duplicate of today's price action (hard down) for the count to remain on track.
Note: I'm not going to mention any downside targets until I have confirmation that the preferred count is correct. We know at a minimum that the market should draw to new lows which is 52 points lower than today's close. We have plenty of time to fine tune any further downside potential.
Let's see what happens.
Best of Trading
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