Tonight’s Big Picture Update includes an updated EW count and Fibonacci retracements and extensions for the SPX and NDX.  The markets in general remain extremely volatile with regard to the speed and depth of the moves.  Many mixed signals being tossed around as traders attempt to come to grips with what is actually in play and what comes next.  Again, the technical pictures have adjusted to include additional upside, but the context remains that the moves themselves are “countertrend” rallies rather than “a new bull market.”

While the near term picture includes additional upside to come, my bigger picture over the long term continues to look for a larger decline that remains out there still to come.  The catalyst again in my opinion will likely came as a “shock” the markets – creating a scenario of larger sweeps lower in the futures as firms make adjustments to positions.  So much of what we saw last week would again occur but to the downside.

Gold and silver are receiving an upside benefit from the uncertainty on display within the treasuries and credit markets.  The Dollar remains within the parameters of the current EW count.