Yesterday’s exhilarating, 50-point plunge exceeded by ten points the 1875.50 Hidden Pivot we’d been using as a minimum downside target. The overshoot was sufficient to strongly imply that still lower prices impend. Specifically, I now expect the selloff to continue to at least 1807.25, the secondary Hidden Pivot of the pattern shown. A penetration of that support as decisive as Monday’s breach of 1875.5o would be warning of still more slippage to 1739.25, where bears would be due for a well-earned breather. That would effectively complete the follow-through leg to the sharp downturn begun in August. As the decline unfolds, each of the three key price levels in the chart — p, p2 and D — can be used to bottom-fish or to get short mechanically when appropriate. However, you should do so only if you thoroughly understand the risks. Don’t hesitate to ask about ‘mechanical’ entry tactics this in the chat room if timely guidance might be of value.
