Market Update - 8/31/2009

Dow Jones Industrial Average: -47.92 or 0.50% at 9496.28

S&P 500 Index: -8.31 or 0.81% at 1020.62

NASDAQ Composite Index: -19.71 or 0.97% at 2007.06

NYSE Internals: 802 Advance. 2209 Decline.

With China's SSEC dropping nearly 7% overnight, it seemed as if we were going to go down nicely today. It did start out that way, with a nice gap down breaking Friday's lows, but the down move lasted about 30 minutes, than started to creep back up at the end of the day... as usual.

The run up at the end forces me to change the count. We have to now mark today's low the end of [iv]. Which means, this entire time, [v] never started. If that is the case, we should start going higher from here, and try to either test the highs of last Friday, or try to get SPY to 105 before we reverse.

But then again... we closed below the lows of Friday, which could mean we have already started the downtrend. I will leave that open for my alternative count.

So which is correct? We should have the answer tomorrow!