The power of this downdraft just continues to amaze me. The beating on "long only" investor psychology must be reaching epic levels. The pressure is building for people to just give up on stocks and never come back. That's exactly what I've expected would happen, just not quite so soon.

I said last night I would be surprised if the market broke 600 on the S&P as the triangle suggested. I said I had three reasons and here they are.

1. The 61.8% retracement level from the 1576 top is right at 600. 
2. There's support on the monthly chart in mid 1996 at 600. (Unbelievable that I have to go back 13 years to find support!) 
3. It's close enough to filling the downside projections on the triangle.
I'll add a fourth
4. Hardly anyone expects it.

I expect this bottom to come in the next few days to two weeks, at whatever level it chooses.

Gold  and the XAU showed strength. Let's see if it sticks.

If you take a shot on the long side keep your stops in place and move them up on any recovery. 

You might want to keep a diary on all of this. Your great grandchildren might benefit from it!