The stock market didn’t let anyone breathe, it gaped down at the opening and plunged again towards our objective around 2550. Breadth settled on an awful note: 564 stocks advanced compared to 3159 that closed down. This market action is typical of a 3^rd wave according to Elliott wave theory and should mark the middle of the downmove. The hedging activity in the option market was running at a fairly high level but without being extreme. We expect to observe over the next few days the first signs of capitulation from various market participants.