The regular Monday market gap down followed by a reversal of much if not all of the decline is unfolding. The only high confidence trade I see over the next few days will be triggered by a break of today's lows, 35,231 on the Dow (currently 35,500). Also notable is EEM which is still down 1.00% (equivalent of the Dow being down 350). As the chart below indicates, EEM is just barely hanging on to the bottom of the six-month long sideways channel. Should EEM break below the channel, especially with the Dow taking out today's lows, look for an acceleration down. The EEM Sep 17th $50P still looks like the way to such a break.
