The market took a big loss today within what should be an unfolding zigzag-family correction lower within sideways corrective wave (4). This view has not changed since yesterday's update. What has changed are the labelings for (3) and the count following that. Regardless of this, market action has still been in line with general expectations.
An impulse higher since 8/9 is the best way to view recent action by far. Given this and the drop today, the best count appears to be a wave (3) impulse terminating 8/9, not 8/10 with an upward flat unfolding 8/9-8/17.
Given the size of (2), wave (4) is likely incomplete unless a more complex alternate 2 count above is correct. Note that the implications for both these counts are nearly the same.
The market should continue lower in the coming weeks or months, but an unfolding double zigzag since March 2009 is still a possibility.
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