I think the pattern is more evident here on the Dow Jones, when compared to SPX. The next leg down (when measured from peak to baseline) has us right at "bear market" territory. From the current high (open/close) a close beneath 21293.368 puts us below the 20% threshold, and while we may dip to this area, I'm not so certain we will close a session beneath this spot (not yet, anyways). I see two possible scenarios, the 1st is if the market caves fast and we begin the next leg immediately, the 2nd includes a possible bounce within the descending triangle formation before completion of the pattern. I would like to point out, that if there is a bounce at the 22.5k area which retraces higher than 50% of the immediate fall, that would indicate a possible reversal due to the weakness of the pattern breakout. The latest I see this playing out by is mid-June, though it could happen at any time before then.
