A chart from Corey Rosenbloom

Afraid To Trade - By Corey Rosenbloom

In the chart, Corey laid out the dilemma we have for now. Is it a “Double Top” reversal pattern or an “Inverse Head and Shoulders” continuation pattern?

I am on the reversal side. As I mentioned on 1/5, I think the market is in the last leg up to 1300-1320 area, followed by a massive crash down. The round number 1300 is really critical. Anything above this level could trigger short cover or "trying to be smart" buy orders. If rejected here, the double top pattern will send us to at least 1240-1250 area immediately. A lot of EW guys have already claimed wave 3 down started, such as Sqwii Trader:

Prechter of EWI disclosed he opened a big short position with stop at 1360.

I trade what I see, but not what I believe. I don't have deep pocket and I am risk averse. I will sit on hand for now. If things changed in the next couple days, I will change my portfolio accordingly.