As we mentioned Friday, the highest probability scenario we foresaw was some sideways consolidation for the day to move across that channel and give another late-entry short opportunity. If the chart does play out as we foresee, we should experience one final down-move to finish off the initial formation of this downtrend.
Once that move is complete at least several days of recovery will be in order, that should probably take the down up to about a 1/3 - 50% retracement of this leg-down.
One thing of note is that the channel we have drawn seems to be of some importance in psychological measurement, as the Dow gapped up through the primary lower channel line and did not come down to fill the gap until after the channel had descended below the precious day's close. This should offer us a good guide as to the next and potentially final drop in price that will complete the first move of this broader bear market decline.
Enjoy your trading day everyone!