Wow, today's move finally woke some people up. A more than 1% down move seems like an endangered species nowadays.
Closed the short SPX and am now small long at the close since I think the downdraft has moved a bit too quickly. CCIs went from overbought to oversold in a day...and not just on the smaller CCI timeframes, but also on the medium ones (40). DI- is also off the charts relatively speaking.
I am playing only what I believe is the B wave of this wave 4 correction. I think the B wave will move up to kiss broken trendline support and the crossing of several EMAs (10, 20) with the SMA 50. This is roughly 1520.
Afterwards, I am looking for a move down into the 1480-1500 range. Not sure where exactly. However, given I think markets always try to throw people off the most, I say we move slightly below 1500, run some stops, and then rally up. There will no doubt be a lot of people waiting for the train to correct, but the train might leave the station prematurely.
Long term, I am still bullish. I am still expecting a visit up to 1550 or beyond.
(all arrows dictate when I shorted or went long).