There may be a triangle forming since yesterday's lows. It may be complete. If this is correct, a completed primary wave [2] on 4/26/10 makes the most sense. If prices move higher strongly, then wave B of (Z) of [2] may be complete, however there are no clear impulse waves higher. So for now the count is a "3rd of a 3rd" wave that unfolded to yesterday's lows. A larger impulse winding down makes the most sense if today's move is actually consolidation.
Many people are labeling the downfall yesterday as a freak event having nothing to do with investors' intentions. This is a possibility, however the event did happen. In addition, the software written is a reflection of the society that wrote it. The belief that the sell-off was an "error" sounds like a bullish opinion. On the other hand, sentiment numbers are clearly far worse than they were a few days ago. However this will always be the case after a "point of recognition". A winding down impulse would make sense with current sentiment readings, but the opposite can also be true.
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