I was modeling a bit higher of a bounce into wave 2 but I there is a growing chance that it could have completed this morning. The count to support that thesis is a bit obscure but it falls within EW rules. If this count is correct then we should see selling into the close that picks up speed tomorrow. WMT warning was not good for the markets folks. Whether this wave ends today or tomorrow I do not know but soon, very soon. The chart below is S+P500 5 minute.
It looks like UVXY might be finding some legs on top of support. I'm in at this level with stops at $25.60. If I get stopped out I will be actively looking for the next entry point because I do believe that these markets are nearing the point where fear will begin to become obvious. Note that UVXY is lower today than when the S+P made it's high. This is the kind of behavior I would expect to see if the markets have put in wave 1 down and are almost done with wave 2 up. Only on wave 3 down will the fear become tangible. Up until now, the early escapees have been slipping out the door and the buy the dippers stepped in like they always have since 2009 because of course the fed will not let the markets go down, blah blah blah. In truth, the fed cannot control the markets and so growing fear will coincide with the growing realization of this truth.
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