Regular Scheduled Update for Thursday.

We can  now possibly begin  to subdivide the moves. I show the Daily chart of the Dow Industrials index to remind us of the larger degree  Fibonacci Extension  potential target. 

So, asuming that the lows of july were wave  1 down of the  larger degree wave 3 down we should be now in wave 3 of 3 down.

IF this Elliott Wave Theory  count is the  correct then we 'should' be able to  expect a big  move down soon.  Notice we  have stayed below the 50 Day Moving Average.  This may be a  good stop  loss for cautious SHORTS.

The daily  chart of the S&P 500 Index above shows the Fibonacci Extension target for Red Wave 3 down.  We should be headed down 'with a purpose' soon.  We have broken the key lower trend line in the S&P  500 and DOW Industrials Indexes.  I am still somewhat skeptical about calling a top due to the fact that the Nasdaq (QQQQ) has not broken any key trend lines yet.  So, a note of caution is warranted.

That is all for this update.  I look at the possibility that we may a bit of a continuation rally from Wednesday left in the markets.

Shep

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