The S&P broke beneath the wave ((b)) low proposed in the triangle, negating the triangle the way I was recently counting it, and most likely negating the triangle count overall no matter how you want to count it. The Dow and S&P have broken the series of higher lowers this morning suggesting their downtrends are back underway. The Minor wave 3 low has not been broken so stocks should fall further. There's always the possibility that the markets are just undergoing a complex triple zig zag which means more rallying on the way, although I very much doubt it. Either way, with the Dow dropping almost 700 points in less than two days be prepared for a possible relief rally soon, I'm favoring the short side until we get a new low beneath Minor 3 regardless.
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The financials have already broken down to a new low, perhaps leading the overall market like they often do.
1.4000 has been an important support level for the euro in the past so I thought it would do a better job testing its underside before resuming its downtrend. It didn't even touch 1.4000 before it topped, reversed and made a new low. Perhaps a sign of how strong the current downtrend is. The larger trend in the euro still appears to be down, I see no reason to abandon the short side.
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