The Current State of the US Stock Market, the US Dollar, and Gold. A free blog post by Sid Norris of

The S&P-500: The January rise in the US stock market went parabolic before topping on January 26. The 11.84% drop over the next 2 weeks (thru February 9) carved out a clear 5-wave impulse to the downside. The recovery so far appears to be choppy, overlapping, and corrective. From an Elliott Wave perspective, the aggressive move down thru Feb 9 is therefore very likely to be a wave 1 of a new downtrend, or a wave A within a 4th wave zigzag. Therefore, another 5-wave wave structure to the downside, taking out the Feb 9 low of 2532.69 would be a high probability expectation. Also possible within Elliott Wave theory is that the drop from Jan 26 thru Feb 9 was wave A within a wave 4 triangle. Only 4 of the 5 legs of a triangle are required to be a zigzag or zigzag combination. One of the legs can be something else, including a 5-wave impulse.