Whether or not the overall bull market has expired should have no bearing on this move. Stocks were up strongly for month after month and sometimes they have to take a rest. We got one big wave down which was a 5 wave motive move below (FAZ is up when the markets are down). Now I see an A-B-C retracement that is likely almost all played out. At the very least we should get 5 more waves up, this time even stronger than the first time. That should be true even if the markets are just doing an a-b-c retracement (leading to a 1-2-3 upward movement by FAZ, TVIX, etc.).
Here is the lower level model of the A-B-C retracement. C is the most powerful wave (by far this time). Notice the alternation between blue 2 and blue 4. This is textbook Elliott. The assumption is that one more tiny wave must transpire (perhaps 15 cents more to the downside) in order to make wave 1/C the same length as 5/C and also to kiss the 61.8 fib. Once those things happen, trading computers should begin shorting the markets again. I model that tomorrow will end solidly to the downside for the broader markets.
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