Even thought the market moved considerably lower today invalidating the triangle count in yesterday's update, the wave [iv] idea suggested yesterday is still the primary count. The reason are due to the width of the sideways action in relation to the downward wave following the last recovery high as well as the choppy sequence of waves since the high last week.
It should be clear that the gap today was the core of an impulse wave. Notice however that the structure is very choppy and has a corrective "look". Impulses within stronger (impulsive) trends usually have a far more clear appearance.
Due to the corrective nature of the waves, the action today is not part of a high probability count. Lower prices tomorrow morning make sense however.
The lower channel above may be reached tomorrow. From an Elliott perspective, 1275 should hold wave [iv] action.
An impulse since late August appears to be completing. Note that it will be hard to identify an impulse wave since late August if there is a new recovery high. This actually supports the triple zigzag count suggested here for months.
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