Today's sell off finally changes trend and it will be a matter of time before the averages make the crosses. The important thing is to stay alert at the key levels mentioned. Currently, I see the impulse wave from today ending at 1171 as an expanding triangle, which is typical of a reversal. However, in order for bears to finally get control, the 1065 level would have to be breached. I expect the market to attempt a rally either tomorrow at the opening or after one more impulse. The obvious target will be the 200 MA and closing today's gap. Also, there is so much fear and volatility now that this points to some sort of turning point. The trend itself is up but since the indexes are trading below the averages, the safest bet would be to stay clear in the meantime or play the bounce for the brave. There will be a subsequent ABC at this level or at the 1040-1050 level.
Levels to watch are:
1108 Short below it or use it as a stop for portion A -34 EMA Weekly
1140 Long above it for portion A -13 EMA Weekly
Trend is still up on the weekly 13/34
1172 Long above it on portion B -50 day MA
1102 Short below it or use as secondary stop for long position -200 MA
Trend is still up on the MA
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