Dow - Hovering below the upper resistance

Since September 17, the waveforms for Dow, S&P and Nasdaq remain the same.

Dow is still hovering below the upper resistance line.

S&P has moved above the upper resistance line and was able to stay above the line. Hopefully it does not go below the line.

Nasdaq has broken the short-term resistance line S-H but it remained below the long-term resistance line L-T as shown above.

I personally do not expect any major correction in the immediate future based on the Case A and B's possibilities as shown. For both the cases, the indices remain somewhere at wave 3 of (III). However, we still have to watch out for any unexpected event.

If the market were to plunge from here, Elliott is still able to provide a wave count as shown below. Take Nasdaq as an example.

There is actually one index at this moment that makes me nervous, the Baltic Dry Index (BDI) that measures the shipping cost. Since early June's height of 4291, it has dropped 50% to 2175 at yesterday's closing. The actual demand for the transportation of raw materials must have dropped quite a lot.

The CRB index that measures the commodity price trend is still holding quite well but I believe if BDI does not reverse its direction quickly, very soon CRB will follow BDI and started to move lower indicating a slower economic activity.