The focus now is on a trigger for a new entry for add-on short positions. The pay off will be by December 16th expiration, or at the latest, Jan 20, 2023 expiration. VIX Note the glaring divergence in VIX as the market indices are making new Wave 2 highs, VIX is NOT making new lows. SPX - 2h Successive new highs that are not confirmed by new lows in VIX above, Wave 2 high just above Fib 61.8% retracement of Wave 1 decline from Aug 16 to Oct 13: QQQ 2h Still the weakest of indices will probably lead the next leg down. A drop below the Fib square around 284 triggers acceleration lower. Today's "powerful" gap up could NOT reach as high as even the 50% Wave 1 retracement level: IWM 2h Repeating pattern: Break-down out of the Fib retracement areas leading to massive declines to new lows: Trade Management Breakdowns out of the Fib retracement zones are high probability entries for new short positions, i.e., index etf puts for Dec 16 and/or Jan 20. New put ideas will be posted upon said breakdowns.
