Fakeout

The bottom seekers were waiting in the wings for the market to rally in the final 30 minutes and they piled in.  Watch for them to pile out when we get the gap down tomorrow.  Yes, I am getting a gap down signal.  There was very little panic this morning, or at the lows in the afternoon.  It was a massive short squeeze and it will just set up a bigger drop next week.  The faster we bottomed, the better for the market.  But delaying capitulation is only going to build up the selling power for a bigger thrust lower.  I now believe we will hit SPX 1040 by next week.