The stock market is positioning itself for a sharp move to the downside that will unfold in three steps down from current prices. On the upside there are two price points that would cancel that bearish pattern. The bigger opportunity is lower, so that is where the focus will be unless and until those Wave 2 highs are exceeded. Bearish Scenario (1) Huge gap-up from Monday gets filled, then, (2) Last Friday's lows get taken out, then, (3) Wave 3 "free-fall" begins. One step at a time. I suspect steps (1) and (2) will occur on the same day, maybe even today, and step (3) will follow one or two days later but with such a gap-down that it is too late to get short. Therefore, the time to be positioned for step (3) will be on or before the occurrence of step (2). "Bullish" (i.e., not bearish) Scenario The chances of this Wave 3 down scenario diminish if prices can rise above the "Wave 2" highs shown on the chart.
