Rough October for investors. The majors had their worse months since the Financial Crisis. Short term (weeks) I feel the markets will likely consolidate off of oversold levels. Using the S&P 500 ETF that tracks the index, SPY, a likely consolidation could grind the SPY to a resistance level around the 280 level and follow a similar wave pattern down to the 38% Fibonacci Retracement and then eventually the 61%. Why the 61%? Not only is that a very strong Fib level but it also lines up perfectly with the peak of the two prior bubbles. These should act as a strong support area and the markets like to test broken resistance levels and the validity that they are now support levels. The markets really never did this given the magnitude of decade’s long importance of this area.