Break Of Support - Enjoy Your Jello

Clearly, we have broken the IMMEDIATE set up for the purple count.  And, that has opened the door to the more direct move lower.  So, I want to be clear about what I know and what I don't know.

What I am relatively confident of is that the market is likely going to be heading to the lower lows we have been discussing for quite some time.  

What I am not confident about is the path that is taking us there. Right now, this weakness suggests that we can be heading to the lower lows in a more direct fashion. Yet, I do not have a reliable wave structure that makes me confident in that perspective.  

For this reason, I have to leave the purple alternative on the chart for now.  But, I will only reconsider it IF and ONLY IF we see a solid 5-wave rally off a low.  Until that happens, and as long as bounces remain corrective, I am forced to view the immediate downside as the focus for now.

In GDX, the red count seems to be controlling.  But, next support is the 77.50-78.75 region.  We would now need to break that to confirm that the red count is taking us lower in a more direct fashion, and it would likely that the purple count off the table in this chart.

Unfortunately, the market is not providing us with a clear structure in either direction.  But, until we see a 5 wave rally, I am now forced to look lower.  I am trying to be as transparent as possible, while also reminding you that this is corrective action at its worst.  There is no clear structure.  So, I am maintaining my personal focus on the buying opportunity, unless something else develops in a clear pattern.