And Down We Go

On Monday, I changed my preferred count to the *immediately* bearish count (end of Minor 2) based on the pattern showing up on the XLF. Here was that post from Monday for both Financials (XLF: That'll Do Correction, That'll Do) and the SPX (Possible SPX Count)

This is the count that I have been maintaining the past few days. Even during today's craziness, I thought that the move up looked corrective: What Craziness Is This ?!

Here are my current XLF and SPX counts:




Now why do I say "Down We Go?". The futures are again confirming the breakdown.

Look at the 60 min chart first. After last night and today it was hugging the support lines (breaking below, then breaking back above, but always hugging it), we finally have a very clear departure.

But if you look at the structure of the move on the 5 min chart, you can see it is **VERY** impulsive down. The move yesterday both above and below the trendline was very spiky and corrective.

I will not be surprised at all with a big gap down in the morning.