This is beginning to feel like that elusive Grand Super Cycle Top that Bob Prechter has been warning about the past 10-20 years. There are many technical and fundamental backdrops coming together, all within the context of a geopolitical-economic breakdown and all within the geometry of a Wave 3 down. The past three weeks constitute the opening salvo, the first leg down that according to Prechter will be a prolonged crash. Along the way there will be numerous counter-trend rallies, some swift and sharp. These are what the trading system will be looking for to generate new and/or repeat Sell Signals. It is that first thrust back into the direction of the dominant trend that generates the new signal. If you missed any of current signals, do not miss the new ones. But first we need some price bars higher, the right patterns to set-up, and then price reversals back down to trigger entries. Very short term there can be some fresh Sells before that first low is in. When this first leg exhausts itself expect a robust (to say the least) intermediate term rally retracing as much as half the initial decline. We will be playing that leg as well and if you have been buying puts since mid-February, with a much larger pot.
