The break of Tuesday's low greatly increases the likelihood that the Dow will hit the next projected target of 6452. A poor close today would also increase the odds of a poor close tomorrow. If 6452 is seen around the close on Friday, it may be a good time to consider taking more short profits off the table as a strong relief rally would be likely. However, if the Dow closes more than 2% below 6452 on Friday, then the next target of 6000 would be expected before another relief rally.
The Qs are easily only one day away from testing the November low, which could also spark a rally.
The main point is that the risk to being short is increasing rapidly. I will be looking to exit some short positions tomorrow. Of course, a positive reaction to tomorrow's employment report would be cause to take some profits as well.
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