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The fact that we broke the low support level of 845 on the S&P pretty much confirms that the next wave down below 800 is soon to come. We are in an extended triangle pattern, which I have grown to love and hate for the past 18 months. It seems we see these extended triangles often, especially before the big kabooms down!

It probably helps explain why we say the markets are resilient. Resilient no, delay the pain yes. Bottom-line, if you followed the short term recommendations, the patterns still foretell a major reversal between now and Dec 7th. If anything changes I will tell you. If you are trading the inverse ETF's I recommended - no worries.

If you are trading put options on the major indexes, there is more to be mindful of. If in equities, sell! and buy again later. Once the Big Kaboom! is over there will be a major and lengthy bull rally, (yes, the contrarian said the Bull word) Unfortunately it will only sucker everyone back in before the next Big Ugly market drop. Longer term we are in for a very, very difficult time over the next several years.