This model gave us a confirmation of today being the first day of an impending correction in price.
Although the hourly chart is calling for some type of snap back rally on Wednesday, this strength should be used by short and intermediate term traders to lighten their speculative positions put in place to capitalize on the most recent rally.
Any strength from here should also be used to either sell some speculative issues short or purchase put options on the SPY.
For those who remain nervous about the health of this market you might want to consider purchasing puts against your long stock positions in order to synthetically decrease your allocation to equities.
This potential correction is going to tell us much about what phase the market is currently in.
Even if the market remains in a bear market I do not believe that we have seen all of the counter trend rally with this most recent move higher. There simply remains far to much bearishness to expect another leg down of magnitude.