Today's lower low in TVIX SHOULD produce 5 waves down before reversing.

Per yesterday's update, the wave 2 bounce is clearly not over as the NASDAQ is up 30 points this AM while the Dow languishes in the low 40 point up range.  The key to getting the best price out of the TVIX low will be patience and watching the wave count.

Also, while the obvious count would be a C wave that just keeps falling at about the same slope as the A wave, keep in mind that the herd can be tricky at times like this.  The herd will take the path of least attacks by the lions and crocs.

One way out of kilter count that could possibly happen, for example, is shown below.  This is clearly neither my primary nor my alternate count but it would be a valid count if the herd chose it.  If at any time the TVIX chart moves back up through $3.50, the wave 2 stock market bounce is very likely ended.  A lot will be told after we see how the current wave down @$3.20 bounces.  If it bounces to the prior 4th are $3.30 and then heads back down to a lower low then the odds are very high that a standard C wave is playing out.  Once I see 5 waves down into C I will be loading the boat with TVIX and then using stops below what I considered to be 5 of C in case my count is wrong.  This is a very critical inflection point in the markets relative to the leading top level count out there right now so it is worth paying a lot of attention to.