Crossroads

The market is at a crossroads.

If we take out the lows of today, the market is likely to fall in a waterfall, wave 3 decline. If the market takes out yesterday's highs, it is likely that we go on to challenge post EU-bailout highs in wave C of II (or B).

I lean strongly towards an immediate breakdown for a number of reasons. A few of those are time cycles, a number of large cap stocks in G10 are very weak, and the low today has been made in a three-wave corrective spike, suggesting that it was a "b" wave of an irregular correction, pending more downside.