The low of Monday’s refreshing 467-point plunge came within 8 points of the 16965 target shown, implying that sellers are likely done for the time being. Even if not, and stocks are headed much lower, because the target took a month to reach, we should expect the bounce to last for at least another 3-4 days before the selling resumes in earnest. Regardless, the sooner the low is tested, the more bearish the implication. If it were to happen as soon as Tuesday, look out below, since that would indicate there’s enough pent-up selling to produce an avalanche. ________ UPDATE (January 6, 10:32 a.m. EST): The bounce was fleeting and weak, suggesting Big Trouble lies ahead in 2016. At the moment, if the Indoos can’t get traction at p=16879.64, the next stop lower will be p2=16721.52, and thence D=16563.43. You can find the pattern on the hourly chart, where A= 17590.04 on 12/31.
