"Waiting for Godot is a play by Samuel Beckett in which two characters, Vladimir and Estragon, engage in a variety of discussions and encounters while awaiting the titular Godot, who never arrives." Substitute "Wave 3 Down" for "Godot" and that pretty much sums up the big picture. The price patterns below remain cocked and ready to fire off to the downside, but waiting around has been excruciating for put holders. Earlier this year the stock market dropped about 15% in a month, exhibiting outstanding downward momentum. The next leg down should be of a larger magnitude, deeper, faster, and generating extreme fear. The only uncertainty is in front of which monthly option expiration will the bottom fall out as the "worst case scenario" unfolds. DJIA A weak Monday would break below the top of the downward sloping trend channel and taking out 34,350 (500 Dow points lower) brings into focus the bottom of the channel, and well before April 14th monthly expiration. ------------------------------------- Russell 2000 (IWM) Take note of the abc corrective patterns embedded in the dominant downtrend that all led to price declines to new lows. ------------------------------------- Nasdaq 100 (QQQ) This particular wave count suggests QQQ to 320 (currently 359) before any meaningful support. --------------------------------- TSLA On the other hand, if the above referenced big picture thesis is wrong, TSLA is going to new highs, and fast. If the stock market rally goes much further, the bear case is postponed and this vehicle is in ludicrous mode to $2,000. Many Tesla models are now sold out until 2023 in the US even after price increase.
