Matryoshkas

If the SPX slide stops around here (ideally 1263), we would have a butterfly pattern (since the open, visible on the 5 minute) nestled inside another butterfly (also on 5 minute, since Friday's low) nestled inside a crab (since 4/18 on the daily), nestled inside yet another crab (since 3/16 on daily.)  Think of them as four very bullish Russian nesting dolls, collectively indicating an upside of 1329 or better.

Incidentally, 1329 is the midline of our 2-std dev regression channel we've been in for the past 4 months.  If this is the top, we always retrace to the midline after the 2nd touch of the negative 2 std dev line one last time before the plunge.  http://pebblewriter.blogspot.c...

Not saying it has to happen... but VIX seems to be contained within the same channel it's been in since April, and whatever the wave count, this isn't feeling like a meltdown to me -- just the rebound camp getting a little ahead of itself this morning.

Here are the patterns.  The butterfly patterns are nestled at the end of the CD leg in the lower right corner.

Two Crab Patterns

Two Butterfly Patterns