We need at least a bar or two more after yesterdays and todays fall before we continue the move lower. We will at some point see the actual behavioural state of the market change as market participants realise that we are no longer trending up in a dosile manner (in the narrow PF channel with occasional small retracements) and once we see a few red long range daily bars down we should expect things to become volatile.I would think it is probable today and tomorrow should see a small bounce which may prove to be a good opportunity to take a short position if the setup presents itself (DAX:and fill the gap at or in the 9270's) but remember that this may yet have another top to build as part of this pattern or still more weeks left before we start lower.
The emini S & P is only off a few handles at 1858 which is way less than even a shallow 23.6 Fib RT and has been the most difficult of all indicies to read and perhaps will tumble or catch up the most but for the moment we will stick with the DAX futures and YM which looks like a double tops but is not ( too narrow) but look at the first two charts for the basic horizontal pitchfork strategy.
All charts and pitchforks and reaction lines below are reproduced in earlier posts and for a fuller explanataion
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DAX
ES H14
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