September 8, 2008; Wave 3 of (3) is Underway

I took some time off from posting to tend to a personal matter.

Wave 3 of (3) is underway. The S&P and Dow are not tracing out 5 wave declines, but the Nasdaqs are. After the blue chips tested the daily trendline several times, both on top and underneath, the market finally gave way to a 350 point Dow down day. This was done with over 90% of NYSE volume being to the downside and over 5 decliners to advancers. Now that's a broad market selloff and characteristic of a wave 3. I'm looking at the Nasdaq Composit and Nasdaq 100 for guidance of the overall market, and both are showing tremendous weakness. Today's countertrend bear market rally is temporary and should soon give way to the next wave of heavy selling with a couple days.