3rd Reversal

The market managed to do yet an unlikely bearish reversal by making a new low and closing below the TA. Therefore, the buy signal was negated as support levels did not hold per my post yesterday. The selling today was just as impulsive as the rally on Monday, the difference however was volume. Today's selling came in stronger volume so it indicates sellers are still in control. I was tempted to play the coming bounce but I figured I'd wait for more clarity. I think the bounce will be telling of how much more downside (if any) there is to come. I am watching for total points gained from bullish crossover to the bearish crossover, if the bearish cross over comes at the Fib retracement level then we probably will see the 1166-1245 area I posted about few days ago. However, if the cross over happens above the TA, the bullish side still has a chance. I am watching for a broadening bottom or an ABC count, the market either rally hard tomorrow or limp back to the 1275-80 area (if the cross over happens tomorrow).