Elliott Wave Analysis of the DAX, SPX, and Nasdaq by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.

For those of you that follow this site regularly, you’ve been aware of the truncated 5th wave down in the US equities indices (from Aug 17 thru Aug 22) since the September 2 post, and those that attended (or donated to receive the recording of) Sunday’s “Counts” webinar were made aware that the DAX ended last week within just a few hourly bars of completing a large 5-wave downward impulse that started back on July 8.

Based on a number of technical factors, I think the global equities markets have all now entered into a large corrective (sideways) phase, as I had predicted they would here on this site over a month ago. The sideways range is likely to continue for several months more months, in my opinion. As I explained in the last weekend “Counts” webinar, the next phase of substantial downward movement isn’t likely to commence until January, and only after what I think will be an up September, a down October, and a November/December rally, but not to new highs. In my opinion, based on my longer term Elliott Wave count, this will be followed by a terrible 2012, when I expect the the European indices to move below their 2009 lows, with the US indices falling hard as well through October of next year.

Sid