Equities break down from trading range means, assume the turn's been made - now what?

Equities broke down out of the trading range today, as the SPX couldn't maintain over 1140. That means we must assume it completed its "5 of 5" a couple of days ago (looks weird to me but the breakdown today speaks for itself), and now heading down in - something! For Tony Caldaro that's the C wave retesting the March lows - or that's his preferred "count" view (he may have an alternate depending on how this plays out). For others it's more bearish or more bullish* - the views vary. For myself - well I'll stick to basics right now. (Have been spending copious amounts of time dealing with Medicare and Medicaid for the care of an aged relative - very unpleasant!!!). We've got to think, once a first wave down is done, that it'll bounce in a second wave up. That might be down at SPX 1100, or could be in progress because the SPX tested down to its 50 dma while the dollar tested up to its 200 dma (charts below). And sentiment should support a bounce soon.

Then selling rallies becomes the order of the day, with swings setting stops at the recent rally highs approximately SPX 1150. As for targets on the correction - they range from 5% (which actually would be slightly under 1100) to 20% or more. And Andre has mentioned the 9-month cycle lows, early February. And we've also been thinking a low in March. Will work more on projections this weekend. If you're not staying in cash and are trying to trade it, selling rallies should be the mode until there's an indication that equities can get bullish again.

*By more bullish, I mean that after the correction, equities may find a base - ranging from slightly under 1100, down to 1030 or 950 or maybe 860/850 - and then rally back for higher levels into May/August. First we've gotta see if this correction lasts into February, or does this turn into the low we've been thinking should go into March. By comparison - the Prechter point of view is that equities will crash to new extreme lows. That isn't my view. But if we are selling rallies, we'll be on the right side of the trade until equities stage a low. Which reminds me - watch the ChartsEdge TCI, it should help with some of this short-term timing.

Gold looks like it's striking downward and I've mentioned the 200 dma as my focus. So that's all I can say for now - wish me luck with the medical bureaucracy, and good luck to us all in navigating these markets!