5 waves up on UVXY today.

The dramatic AM reversal today was yet another sign that "buy the dip" / "risk on" play is dying and now it's instead time to sell the pops and profit from drops / risk off.  I count the mid day rising wedge today as red 3 and then the afternoon pullback as red 4 with red 5/blue 1 into the close.

The implication is that the markets will open higher again tomorrow but will again be rebuffed.  The current wave unfolding will either be C of 4 (where 4 is a HT that is not counted below but which is still clearly possible) or blue 2 which is my primary count right now.

What would be awesome would be if the markets did a small 3 wave  rally into the close tomorrow and then opened on Wed with a big gap down (3rd wave gap up from UVXY).  Of course, a rapid pull back at the open followed by a powerful 3rd wave move up would do the trick as well.  It's just that gaps have a way of making statements even though rapid moves up with no gap don't have to be filled.

Bottom line: it's looking more and more like Christmas comes early for shorts.