Based on candlesticks, depending on how today closes, it is looking like probably around a 4% mild correction from current levels in EWP, but by the time it confirms, it will be reduced to more like 2%. if you anticipate direction based on the 70% or so probability (based on past data) you can expect a greater decline, but the pattern itself warning of bearishness coming 70% of the time or so will not be complete until the end of the day, Regardless, I think some mild caution should be advised here, but probably not enough to refrain from holding bullish set ups just yet. Perhaps an increase of TLT as a mild hedge instead, raising cash from losing positions, or refraining from adding new ones may be a more appropriate response.

The expectation of a decline in Spain should be bearish for the market and bullish for the dollar, however the longer term double bottom pattern in spain shows that it is unlikely that a minor 5-10 day move will reverse the overall longer term trend and more likely that we will just see a minor counter trend decline.

More on the candlesticks may be yet to come if I find the time.