Looking for continued weakness

The SPX halted its rebound yesterday (850)within sniffing distance of the 50% retrace (851). XLF halted its rebound right on the 62.8% retrace (10.60). These were expected. Today the move down should continue. My targets have not changed. I am still looking for 725-775, with the liklihood of the lower end of this range. As the move unfolds today I should be able to get some more clarity.

Playing countertrend moves is difficult. This move off of 875 is countertrend to the bear rally. It will not be easy to play this, so I will use more caution in closing out positions as the move can complete and reverse quickly and rapidly at anytime.

I am seeing two patterns develop on larger time frames. One seen on the 10 day chart should complete as early as today once the SPX crosses below 820-825. It may take another day or two to cross this line, but the pattern will still be valid. The target for this pattern is 785-790.

Another pattern is seen on the weekly chart. This pattern still needs another one to two months to finish forming so it may not complete. However if the market does what I am predicting it will precisely complete the pattern. We need the SPX to move down to the 725-750 range. Even a move near the 666 bottom or beneath it slightly keeps the pattern valid. Then move back up above about 825. This price may change slightly depending on how the rest of the pattern plays out. The target for this pattern is about 1130 on the SPX. This pattern is also pretty reliable.

These two patterns are very reliable and both amazingly fit with the scenarios I have laid out previously. The target for the second shape is higher than I originally thought, but still in the general neighborhood. I expect the first to hit. I am not sure about the second one yet. A lot can happen in the next couple of months.