The key tske away from this implied open is that it is the beginning of a Wave 3 down and not any kind of "pause" in an immortal bull market. For the DIA (Dow ETF) below, first target is the May 14th low at 230, some 30 DIA pts lower (23,000 on the Dow). Next target is the 181 (Dow 18,100) the March 23rd low. In other words, there will be plenty of time and points ahead to initiate and manage short positions via index and stock puts, and VXX calls. We will be adding to the shorts/puts/vxx calls in the option portfolios as this long anticipated Wave 3 decline unfolds over the next 6-8 weeks.
