Fallen out of the wedge

The initial forecasted target 625 was reached today. It was an obvious short when it could not surpass pivot 631. Tomorrow's numbers are 630, 627 and 623. Also, there are many indicators that point to the next target of 616ish. First, today is a confirmed sell. The volatility is now in line with the price action. Meaning, investors are in realization of the fact that there are going to be a lot more hurt in earnings come next few weeks. If you look at DIA or QQQQ there is a gap they have to fill. This is inline with OEX falling to 616ish before reversing. As you can see this is where the Fib 78 line intersects the lower channel. In the past few days there were many tell tale signs, WR7, NR7, turtlesoupsell and common sense says if the market does not go up it has to come down. It cannot stay put all the time. Bradley model is pretty accurate these days. April 7 was turn date and the next turn date is Apr27 and that pretty much says all of the earning season time frame. Further, it kind of projects the low of Mar to be revisited. It could well be, for as you can see the entire upward sloping channel is bearish and at some point, it could fall out of the channel to reach the March low, scary, that means, caution is advised for bulls. Just as everyone is talking bullish, you may find the rug pulled out underneath you.

2c