But for now, I believe that the rally from July has ran its course and now we are either in P3, or a new corrective wave down.
There is also one count from Binve that I am keeping an eye on, it is short-term bullish count, with a higher high coming soon to finish off this four month rally. It is also one of the few counts that seems valid, with-out breaking or bending the rules and can be found here-
There is No Better Breakfast than Pumpkin Pie and Midnight Black Coffee, from Binve's blog, Market Thoughts and Analysis
This is the bearish count I have going forward on the SPX, still unsure if the [ii] has been completed. The Russell looks like it is possible that the corrective wave wrapped up at the close, if so, Monday might be really ugly. I still have a bullish option that I have been watching in which this sell-off is part of a larger correction of the previous rally. Targets I am watching on the SPX are 1083.74 for more downside, confirming the trend is still down by making a lower low. And on the upside, a break above 1110.82 would make me rethink this count.
Breadth ended the short day at 5.95:1, decliners on pretty high volume for a half day. Volume today was about equal with the volume from Wednesdays full day of trading. I have a feeling Monday's volume will be above average, hehe!!!
It is still too early to put a count on this with confidence, but a guess would say this move down might be wave i of 1 down, for the really bearish count, and the bullish count would be this wave was part of a correction of the recent rally and most likely would be the "c" wave of an a-b-c down, counted as a "B" wave or as a 2nd wave with higher highs to come.
5:29, ES-minis at one point reached 1072.75 last night. The Dollar stayed on a tear last night, at one point up to 75.58, currently 75.31. Asia closed heavily in the Red while Europe is up slightly in the green right now. Worse hit were HSI, down 4.84% and KOSPI, down 4.69%. The FTSE is up .42% and the DAX is up .59%.