SPX, TLT, TRAN Updates

On September 27, I suggested the possibility of a 3-3-5 flat that would retest the 4305 zone before bouncing back up.  Yesterday culminated with a perfect test of the low.  We'll discuss that further in a moment, but first, let's take a quick look at this unique, high-tech interactive chart that visually depicts the market's price action from the past couple weeks:

All kidding aside, it's interesting to note that ES (e-mini S&P futures) made a new low in the overnight session, which suggests that even if bulls do get a bounce here, we're probably all-but destined to head back to this low (as the 3-3-5 count suggested all along):

Near term chart:

Bonus TRAN update:

And TLT update:

In conclusion, everything continues to break the right way for bears.  While we still can't entirely rule bulls out, this is about "as good as it gets" for bears at this stage, and the question seems to continue to be "down now or down later."  Trade safe.