Another down day was disappointing, and the bears seem to be expecting a significant decline, but while slightly lower prices may be seen tomorrow, the extended pullback seems to have run its course. The McClellan oscillator has turned up from an oversold condition, and the pattern of the decline looks complete or nearly so. Maybe Santa will show up next week.
That said, the weakness has put a significant dent in the number stocks that are set up to break out. This probably means that the best we can hope for as we approach the end of the year is a rally back toward the early December highs. It is fairly certain that the current choppy and weak rally that began October 4th is an (X) wave, and the market is currently in wave [b] of Y of (X) with wave [c] of Y of [X] to follow shortly. Unfortunately, there is nothing that says that wave [b] can't be a triangle or double zigzag. I'm thinking a triangle that plays out into the new year to keep everyone guessing, with a surge into late January.
What I don't see at the moment is primary wave 3 down, the mantra of the elliott wave perma-bears.