My post yesterday was using the continuous futures chart, which...

My post yesterday was using the continuous futures chart, which demonstrated a stock-standard contracting ending diagonal.

However, when looking at the XJO, it represents a rarely seen (and often more powerful) expanding ending diagonal. Usually one should expect a break of the trendline highlighted below. In my mind, wave 1 of this move should get through that trendline. Perhaps wave 2 backtests it.

It is hard at this stage, however, to make any projection on the depth of the correction. Time will tell. U.S. indices exhibited strong breakdowns overnight, including fully engulfing candles on both the SPX and NDX of the prior two days. You never know, but so far this move looks pretty solid to me. (snapshot of NDX 1 hour below too)

1hr XJO



1hr NDX