Quite the forceful message today from the Street.
800 pts down early on, just like with the Covid Swoon.

Here’s what I’m thinking.
The Covid down kickoff (Sunday night) came fairly early in the move off the Feb ’20 highs.
It was a launch pattern.
This one in EW terms comes late in what could still be a c of 4 correction to the ongoing but tiring bull.
(Where in an expanded flat, b waves made the ATHs just before c down began)
Wave 4 started a month ago in that view and a last but feeble w5 up remains.
But key trendlines and channels were busted today, so that bull call is now quite suspect.

If we are now in THE EVERYTHING BEAR, it was a leading diagonal 1 down, and 2 up is near …. a retrace.
Decide between those two ALTS, then plan your moves.

In the PM sector, bad news for bulls.
There MAY be a relief rally (tying up with equities bull 5, or bear 2).
But I see at least 3 months of net red ahead from here, before bottoming conditions begin to form.
I think EMs will point the way, as China and Brazil have been in bears with one leg left to go. Watch them late winter.

One final note on general equities.
The most bearish folks have this as a generational top, and a supercycle WAVE IV is now afoot. If so, it will last decades.
Given digital counterfeiting by central banks, it probably means massive losses IN REAL TERMS but nominal prices may be more resilient.
On smaller timeframes, W-4s are a bitch to trade, because they can take so many forms.
If its the triangle IV, it should be quite tradable, but the A wave down will be the steepest and deepest.
Then net sideways for years. No more ‘wealth effects’ or residential ATMs.

Its return OF capital time now.