I think the squiggles posted yesterday http://4.bp.blogspot.com/_TwUS3GyHKsQ/TTdyj4s5YuI/AAAAAAAAIf0/IhJqf1sQ-HI/s1600/wlsh1.png worked out well for a wave count as an extended wave five in this first wave down.
I reworked the degree labels and bumped them up one degree but the count from yesterday is intact.
Note the rebound wave is an [A][B][C] so far. It has retraced around 38%. Is this enough for a wave (ii)?
EWP mentions 2 things concerning our situation here:
1) Extended fifth waves usually retrace back to at least the price of the subwave two of five.
2) If a corrective zigzag pattern does not achieve a deep enough price retrace, the pattern often will double itself to become a double ZZ.
So using those 2 principles, we may see some upside on the markets tomorrow to fulfill a deeper price retrace.
The DJIA may reach a new recovery high as it has not participated in the selloff (seems corrective down on the DOW) and may be signalling it intends to end its week on a new recovery P high. However its a good bet that it will be on its own in that regard. Then we go into the weekend with a new DOW P high who could possibly claim to be bearish over the weekend on that? (answer: me!)
The Wilshire squiggles as I think it makes the truest patterns: