5/1 Weekly Commentary

The top is in and markets around the world have been declining for 3 weeks while the U.S. markets struggled to their top Monday morning.
Shanghai has completed it's 1st 5-wave downward and is due to a 1-day pop upward:

Emerging markets are due for a 1-day pop upward:

So, unless there is some unanticipated bad news from Europe's weak sisters I am holding 15% double-short stocks and 10% long bonds expecting an opportunity Monday to increase exposure at better prices.
U.S. markets are coming down to support, which also happens to be a head-and-shoulder neckline for many of the indices.  The Nasdaq closed right next to support and it's 29-day M/A:

As for Elliott wave counts the cash indices suggest but do not readily qualify as 5-waves down.  However, the futures count 5 down from the 4/26 peak:

As well, the count is 5 down from Thursday's overnight high, auguring a bounce and much more decline.  Here is the closeup of that decline:

I am not going to discuss the economic environment, overseas implosions, or any visible events.  My focus, now that I have an I1 bear market staring me in the face, is upon the strategic (I1) and  tactical (technical/wave) situation as it evolves.
Strategic:  I1 is declining into 5/11 and into a subdued long-term state
Tactical:   I have already stated that the wave count implies a snap-back Monday
  The technical condition is:
   a)  The daily technical composite reached -20 on the rally to the top
   b)  The weekly technical composite should issue a sell signal -8 when the data is  processed  Monday afternoon.
The stock market is in imminent danger of a cascading decline after the Monday mini-rally.  Initial target SPX 1140 by 5/11.