[DJIA] : is the "oh shit" moment upon us?

Just a few days ago I felt compelled to remind everyone of the big picture on the DJIA and to that end I provided the chart below at the backlink.



The purpose of charts is to do wave counts, provide support and resistance points, etc.  As you can see from above I provided the next two critical support points.  As of Friday the chart looked per below.  The very temporary pause at the lower rail of C of 5 broke down with malice and then paused over the weekend at the major, major support level shown.  With the futures deeply in the red it is likely that this will not hold on Monday.

However, note that the futures are simply a form of after hours trading.  It is possible that wave 1 down was reached on Friday for the so called cash markets  and while the futures crushed the big support line over the weekend into their wave 1 down, perhaps they will have recovered by Monday and begin to form wave 2 up.  However, if you see this know in advance that although the cash market might not have broken that big top rail just but the futures market mos def did.  That is not a bullish thing to say the least.

While I see it as possible, I'm far from saying that the futures will bottom and then go green before the open tomorrow.  I currently see it as a low probability outcome.  But the buy the dip crowd follows the futures and to see them down over 400 points has got to be causing panic in all financial centers right now.  Maybe it will cause them to step in like the money barrons of the crash of '29-'32 initially did.  They stood on the trading floor and told everyone they were confident and they were buying. 

For a short time the prices went up but the panic had already set it and very soon afterward lower lows were seen and the big mouth moneymen eventually stood down lest they go BK trying to prop up the unproppable.  Remember, much of the buying has been debt based.  So as people scramble to liquidate their trillions of dollars in leverage there really is no person, no institution, no government that can stop it. 

Once the panic sets in (and the 500 point down day suggests that it indeed has), the herd has to run it out of itself and I know for a fact that there is incredible complacency in the form of leverage and lack of downside insurance built into these financial markets.  It's at a historic level so extreme as to be a joke.  I only wish that more people were aware of the truth.  Warn your friends and family.  This chart does not lie.  The ODDS and not certainties indicate that the DJIA will rapidly fall in 5 clear waves to a lower low than that red lower rail. EWI thinks that will be sub 1k perhaps even down to $400 which is the level of the prior 4th of this grand supercyle degree retracement.