The Wave 2 correction is dragging out, but a drop now below 35,200 will coincide with a break of the upward parallel counter-trend channel as well as a drop out of the Fibonacci retracement window. That will be the beginning of a Wave 3 down to new lows below the Jan 24th interim low of 33,150, about 2,000 Dow points lower. Shorter-Term There is no time expectation for the reversal and there is enough time left in the Feb 18th option expiration, but new positions should go out to March 18th. IWM, QQQ, SPY are all vulnerable to a steep drop into late February, early March. Intermediate-Term NYSE FANG Index NYSE FANG Index still on a Sell Signal, underperforming and will likely lead the next leg of the decline.
