As the markets are indicated for a nice gap lower, remember that typical price behavior in bear flag and bearish pennant patterns is that we see impulsive selling leading down to the flag/pennant (i.e.-flagpole), then a period of consolidation followed by impulsive selling once again down to the target (which typically measures roughly equal in length to the flagpole. Therefore, as the gap down today clearly fits that bill, the odds favor additional downside to my next target (shown on the previous 60 minute charts) before any substantial bounce. Translation, although anything is possible in trading and contrary to the pattern that has been in place for months now, it is not advisable to buy this dip IMO.
