Mid-Session major indices: DIA 254.50 = -2.70% SPY 303.75 = -2.60% QQQ 243.40 = -2.62% IWM 137.44 = -3.80% All these major indexes have now broken down through their trend channels up from the March 23rd market lows. This is the channel I have been labeling Wave 2 that when broken will lead to a strong Wave 3 down. In addition to breaking its channel IWM is showing significant relative strength to the downside and now price has broken below $140, generating a System Short-Term Sell Signal. Although the PRO model portfolio is already short one index position via the DIA July $250P, I am adding IWM puts as there is too much reward potential should today's decline be the beginning of the unfolding of Wave 3 down. PRO Sell Signal: IWM Option: July 17th $140P Option Alternate: Aug 21st $135P
