%5, 7%, 16% drop in SPX - Update

In a previous post I described a possible pattern of increasing drops in the S&P 500, where drops of ~5% seem to precede drops of ~7%, which in turn precede further drops of ~16%.

-5% -> rally -> -7% -> rally -> -16%

The drop we just witnessed measured 8.1%, and it followed a drop of about 3% (not exactly 5%, I know).  If this pattern holds up, we should see a rally of one or maybe a few weeks, taking us to the ~1,350 level, and then a further drop of around 16%, which should take us to ~1150.