Nasdaq E-mini - February 23, 2011 - 180 minute candles. The correction is underway . .

There have now been 3 key confirmations to the US stock market correction, which is now virtually assured to be underway.  The character of the downward price movement is definitely impulsive, indicating that this first wave down is likely a 5-wave A of an ABC zigzag, which is depicted on the chart.  The eventual downside target for the Nasdaq E-mini is 2082, the extreme of wave 4 of one lesser degree (Minute/pink).  That's a full 13.4% correction, so we'll see.  After this initial downward impulse completes, we should get 3 waves up within the next few days, which would be a very reasonable shorting point, if so inclined.

See my February 21 post (http://sidscharts.blogspot.com/2011/02/nasdaq-e-mini-february-21-2011-360.html) for a wider perspective . .