Using the same top as suggested in Thursday's Update, it appears that an impulse lower is winding down with "3rd of 3rd" wave completing yesterday. Two 4th and 5th waves are expected this week completing an impulse wave and setting the stage for a sharp second wave bounce.
In this early stage of what should be a large decline, the above channel line has been containing prices for several weeks. This line should be broken to the downside this week even if prices are only correcting action since late August. There is good reason to believe that the advance is complete however given the triangle seen last month and the larger zigzag structure.
There is now a complete count for the advance since March 2009 seen here and above. The rally was 560.05 S&P 500 points, an 83.99% rise. Momentum should start to pick up to the downside in the coming weeks.
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