DAILY CHART: This chart is very telling and crucial. This RISK SELL OFF is CORRECTIVE, but could turn into something much broader.

In ELLIOT WAVE, C waves are typically the most important. Here is a quick definition:

We use EW to develop our GAME PLANS.

CLOSE UP: We measure the FRACTAL from the last significant corrective move. We find a count and we define this sell-off as a C-wave, corrective. We also look at the extension to see possible targets, a 2X move lines up with the beginning of wave-3 (end of wave-2), that is not UNCOMMON.

There is also a FIBO (38.2%) very close. That is where the move after the last corrective wave started (move up). The TREND is still positive. We will do a deeper count to figure out what level would be a TREND CHANGE.

WEEKLY CHART: We draw a RED DASHED line that indicates what we define as a TREND CHANGE.

There is NOTHING CONSTRUCTIVE coming from this close. This is unequivocally bearish, but we have to put this in context of a broader move. We continue to defend the thesis that there will be a FINAL LEG HIGHER in RISK (a FINAL WAVE). What we have to do is now define our entry and define a count, on a broader chart, and see how that correlates with other assets, mainly FX, which is our core asset class.

More to come this weekend, we will devour the charts and present our findings here.

Interesting times ahead.