Pattern chart is very bearish, but we need to break the gap.

The bearish count (if this is indeed an impulse down) needs to break down. Soon. Like tomorrow morning soon.
Also notice my notes regrading the count. The NDX made a higher high than Friday's high. So the 1-2, 1-2 count is WRONG on the NDX. Maybe you care, maybe you don't. But I subscribe to the theory the the best count is the one that works on all 5 major indices (SPX, INDU, RUT, NDX and COMPQ).

Recall this chart from 3 previous posts: Another Look at the Correction, What's All This? and That's Good Soup. My prediction from yesterday (Green Notes on the chart) panned out quite nicely.

Here is my VIX chart. The orange dotted line is my prediction, what we needed to see, from a few days ago (The Market Moves Vixenishly)
