• Friday’s options and futures expiration already began to exert some influence today, as the market danced around 3950 for most of the day before spilling over toward the September 7 low (3883.50).
• While the market managed to stay above 3900, the bull’s main hope is a double bottom at the September 7 3883.50 low.
• I still don’t see evidence of a bottom forming in the new decline, so lower prices are the most likely path.
• It seems that the WEM low at 3975 is a lost cause by now, so I put the two standard deviation WEM low at 3882.50 into the table above – coincidently, the level is only a point below the September 7 low.
• Mercy from options and futures expiration could draw prices back up to 4,000 or hold them near 3900, but the probabilities are low. Still, carrying the possibilities forward in your narrative does not hurt.
• With the rollover, we can now project some lower targets starting with 3730, where the new down leg equals the 8/16 to 9/7 down leg. The 1.618% target is 3758, with the 2.618% target at 3000. We also drew the levels on the first chart above, along with some lesser goals.
• Our regular Navigator Swing Trading accounts remain 100% cash, with aggressive accounts short from our last sell signal on 9/12 at 4127.50.
• The key 10-year treasury interest rate closed a thin mint short of a new high today. As I have said, a new, sustained high in 10-year interest rates likely means new lows in the indexes.
• Meanwhile, Rome continues to burn while Nero  President Orwell obsesses about Trump World.
• Batten down the hatches; a bad storm is brewing next week and it could come early tomorrow.
• I hope I am wrong.
• I want to be wrong

A.F. Thornton