Wave 2 getting long in the tooth...

I sold SVXY at $77.10 just now, back into TVIX at 3.31.  I did not expect things to play out so quickly but I guess that's in character for a C or a 3rd.  DJIA, NAS100 and $COMPX are all in the proper range for a bounce.

We will now find out if the top level count is right or wrong.  If it is right, and I do believe that it is, we should see a reversal pretty soon, hopefully before noon.  An AM reversal would send the strong message to the markets that the bear is closer and stronger than many believe.  It won't take too many iterations of buy the dippers getting screwed before the market sentiment begins to sour in a significant way.  People know that they are sitting on a ton of Fed-driven gains and now the fed better come out and back up these markets with more cheery words or the sell off is going to pick up speed. 

This is a critical inflection point for the markets. 

By the way, I am surprised that JNUG is not reacting to this rally.  I stayed out of it because there is no strength there yet.  The horse I am betting on right now is TVIX.