As the following chart indicates, the market peaked today right between Fibonacci 38% and 50% levels. It can go higher and reverse, or it can simply reverse at the Open on Wednesday and never look back:
Adding to the argument for an imminent reversal is the False Bar Stochastic indicator along the bottom of the chart. It has risen along with prices from Oversold at the recent lows and is now entering the Overbought area. A cross-over and reversal down in this indicator should be confirmation that the next wave down has begun. Another way of looking at this (if you don't have a stochastic indicator in your pocket) is that any serious weakness tomorrow will trigger a Stochastic Sell Signal.
Below is a Market Club Trade Triangle chart of the same S&P index:
Note how well the Weekly Sell Signals fared in the this Triangle Trading chart. The September 4, 2008 Sell Signal generated a gain of 365 points, or about 30%. The most recent Sell triggered on January 14, 2009 at 857. A similar 30% gain will take the index all the way down to the 610 area on the S&P, near the bottom of the range targeted by the Elliott Wave analysis.
There are no sure things in trading market indexes. But there are Wave 3 declines which are characterized by violent, demoralizing, blood red market conditions. If you nail the right side of one of these suckers, you can profit handsomely. That's why we're here and that's what is so exciting about the current analysis.
As Dylan so eloquently put's it, "It's not dark yet, but it's getting there."