Assuming yesterday's high marked the end of wave (3), I expect wave (4) to exhibit alternation with wave (2), in both form and depth. Referring to chart 1 below, wave (2) was simple and shallow, thus raising the odds of a complex and deep wave (4). Per Ian Copsey's 'Harmonic' adaptation of the classical Elliott Wave model, the sum of the retracement levels of waves (2) and (4) should equal 80% to 120%. Since wave (2) retraced approx. 33.3% of wave (1), I expect wave (4) to retrace, at a minimum, 47% of wave (3).

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Chart 1. The S&P's intermediate term forecast.
 
The complex form that I believe the correction will assume is either an Elliott double or triple three. Chart 2 below depicts a double-zigzag correction which could easily degenerate into a triple. We'll have to play it one day at a time by waiting for the pops (i.e., B and X waves) and sell them. We just sold wave X an hour ago.

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Chart 2. The anticipated decline pattern.  A deeper pullback is expected than the one shown.

Trade Well,

Peter