Again, here's two charts that I had in last nights newsletter, this is how we think the market will play out over time, this is the Elliot Wave count that we see..

S&P 500 weekly chart Projection

S&P 500 daily chart

Potential long term Elliot Wave Count: The Bull market ended in October 2007 with a 5 wave completion. This bear market is a large ABC downtrend. Major waves A and B have completed and we are now in major wave C downtrend. Ultimately we think the C wave could take the S&P 500 down to a target of about 1100 or 61.8% retracement of the last bull market. Wave C should contain 5 waves

In the very short term, we are nearing completion of minor wave 1 of Major wave C. When minor wave 1 is completed, we should get an ABC counter trend rally of minor wave 2 (which will form a higher low) and could retrace 38.2% - 61.8% of wave 1. After wave 2 bounce is complete then we should go back into minor wave 3 sell off in the downtrend