Macquarie futures analysts are calling a 3121 target if we...

Macquarie futures analysts are calling a 3121 target if we breach 3974. These guys are so ultra bearish(snippet below was from yesterdays report)

"The market traded into important resistance at the 4340-4500 region yesterday, finding rejection overnight. As per the relabelling below, I favour that prices have spent the past three and a half weeks tracing out an irregular correction (an irregular is where the b wave makes a new low), implying that overnight weakness likely marks the start of the next downwave to new lows (favoured to represent wave (v) of iii). A strong influence on this thinking is the technical position of the US Equity market. As per the 2nd chart below the structure traced out in the S & P suggests that is has completed a corrective structure that began on the 10th of October, with last nights decline likely the start of a move to new lows. Locally, a retreat through support at 3974 where 61.8% of gains made from the recent 3724 low are retraced would provide a high degree of bearish confirmation. Under this outcome, the previously discussed 3121 major wave relationship remains a probable downside objective. To begin to reverse the technical picture to one that is potentially positive, the market would need to extend the strength of recent days through the important 4500 resistance."