The market certainly looks ugly this morning. First was the gap down Sunday night to the 2860 area, which was a nice backtest of the falling trendline that it pushed back up through on Fridays rally. This should have been the spot to hold and start another move back up from, but it gave way it seems and dropped hard again to a double bottom area now. I'm not sure what to think about this?
If you would have ask me last night I'd said the move up on Friday from the low looked like a nice clean A wave of some degree and the gap down Sunday night was the B wave, which would have lead me to believe we'd be going back up today for the C wave. But with this failure to hold and further drop that scenario is looking pretty weak right now. And if the bulls don't hold this double bottom area around 2825-2830 then look out below.
I'll keep this mornings update short as my ABC up to 2900-2920 seems to have failed (or is on life support) and the only thing left are crash calls and while I do think one is possible I wasn't expecting it for today. So best to just watch for now. Good luck.