Per David Elliott :

Yesterday saw most, if not all, our upside targets hit for the Index markets as well as for our stock targets.

The SP-500 and the QQQQ, both retested their 50 SMA and failed.
We call that price pattern an IHF, “Ice Hole Failure”. Typically that pattern resolves itself into taking out the most recent price lows, and the start of a wave three price pattern.
In this case the wave three is to the down side.
This IHF pattern also gave us another opportunity to go back into our short side of the Index’s with Put options.
The BKX is in day two of an IHF. With new lows likely at the $13 level.
WFC put in an IHF, and a Bear Engulfing pattern Wednesday.
JPM also put in an IHF pattern
As long as any price spikes fail to take out the upper MOBO bands we will remain on the Short side of the market.

We may see some choppy markets tomorrow with most traders waiting for the unemployment numbers coming out on Friday.

For the DJ-30 we need to see a break of the 50 SMA at the 9678 level.
We can tolerate intra day bounces up to 9860.

For the SP-500 our first downside support is 1029.40 with intra day resistance up at 1053.35, with a breakout close over 1070.70 as a reversal signal for our short position.

The QQQQ has a wave three support target of 40.64 and intra day resistance at 41.78, and daily resistance at 42.42.

Gold, over night, put in a failed new high.
Longs should watch closely for a move back to the $1075 area.