More downside to come or just another correction?

The triangle the market was following yesterday failed to hold today so I am switching back to the count from last week with 1709 as the top for 5 waves completed from 1682. Also I am watching this bearish wave to see if it completes a 5th wave to the 1690-01 level, a 5 wave count would increase the odds of a bigger correction. But the ultimate indicator obviously will be the short term trend so we need to see consecutive closes under the Trend Average. If we get the bearish signal the level to watch will be 1676 as a break of that level will mean the market will likely be headed to the 50 day ma.

I am holding the VXX  position and will probably add longs if we get a 5th bearish wave tomorrow to trade the bounce.

And if you haven't taken the sentiment poll, please do so at:

http://trendingwaves.com/forum/viewtopic.php?f=3&t=4

Main S&P 500 Trends*

Short Term Trend = Bullish

Medium Term Trend = Bullish

Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.