The market had a big down day today working perfectly with yesterday's update. This decline is very likely the 7th wave down (the point of recognition wave) of a 13 wave impulsive sequence from the 11/9 high. A series of 4th and 5th waves are expected for the remainder of this week and some or all of next week.
The 8th wave of the sequence (the 1st 4th wave) likely began today as a sideways correction. The market should have difficulty rallying tomorrow.
If there is a rally tomorrow, it will likely last several weeks completing or adding to some larger impulsive structure that began 8/31. To me it is more probable that the market becomes very overbought this and next week as an impulse wave begins winding down.
The rally since March 2009 should be complete. A larger view of the count can be seen here.
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