5/6 Daily Commentary

Came in 25% short.  Took 5-figure profits at SDS 31.87 when I counted 5 down.  The 5th wave then extended and market crashed without me in it!
So, that crash was wave (iii) of 5.  The sharp rally starting at 2:47 was wave (iv).  I was able to re-enter at 32.95 for 10% SDS.
Wow! What a day!  Looks like what happened was that an erroneous order to sell P&G for 1 billion shares was entered at 2:35 and routed to Nasdaq.  It was orderly until then @ $61.  NYSE halted trading at $58. The order was routed to Nasdaq, down to $40 with no human intervention until the error was discovered.
To the world watching it looked like the stock exchanges were genuinely crashing. 
Due to the distortion of the cash indices by the P&G debacle I look to the futures charts for the proper wave count. 

Here is a shorter-term chart of the wave 5 decline today:

So the low represented a completed 5-wave.  I got 10% short again on the rebound at SDS 32.95. 
The rally from the lows represents a 40% retracement of the entire decline from the 26th. The jobs report comes in tomorrow.  A continuation of the rally to SPX 1160 will cause me to increase my short beyond 10%.