Today’s 110-point drop can be a little intimidating, but an ABC pattern is an ABC pattern, and its magnitude should have no bearing on our ability to target the move. (Recall the scene in Hoosiers when Gene Hackman measured the distance from the basketball court floor to the rim and found it to be 10 feet, even though the court itself was in a 10,000 seat arena.) Anyway, we should look for the selloff to continue to at least p=2767.88, but a breach would portend more slippage to as low as 2733.50 over the near term.  ‘Mechanical’ and countertrend trades will perforce be riskier than usual in dollar terms, but the rules for executing them are the same. _______ UPDATE (Aug 6, 10:06 p.m.): DaBoyz recouped a third of the futures’ recent losses with the help of some urgent short-covering. Keep in mind that nothing has changed to mitigate the tariff war, only that China has finally placed a bid under the yuan, setting off a bear-squeeze panic in the dead of night. Shorts are the only buyers here, so we’ll stand aside and let them shoot holes in their feet with semiautomatic weapons.