I see this as a 3-3-5 correction....we are now in the 5 wave sequence which will likely be quite deep in my opinion...likely back up to the 4k region before dropping hard. Note there is no way to know the exact pivot pt on this retracement...it can be shallow or deep...pretty much anything goes on wave 2....but the deepest is typically 0.786 which is not uncommon for wave 2's. If it breaks above the 0.786 then it is likely that the count is wrong...so watch this area carefully...as for me, I am holding some puts on SPY ...but a moderate sized position...nothing too crazy.