Tuesday, 10/9/12 update

Apparently the ES got the memo from the weekend post.  If the analysis presented Saturday is correct then a "c" wave of a flat type structure that's been unfolding since mid-September is underway.  Target is in the low 1420's.  Updated chart shows waves 1 & 2 complete and wave 3 in progress:

One note: since the preferred count is for this to be a 4th wave, then it's possible that the correction could turn out to be a triangle.  In that case the sell off of the last few days needs to stop short of the "a" wave low of 1424 and turn up into wave "d", which of course would be followed by a wave "e" to complete the 4th wave.