SPX and INDU Updates

A couple updates ago, I outlined a potential ending diagonal, as well as the potential for a less devastating, but still near-term bearish, expanded flat.  Since then, the market has performed in line with both of those patterns, which is kind of "exactly what I was afraid of," because it's pretty difficult to sort one from the other.  Let's look at the diagonal first:

Since the diagonal didn't overthrow the upper line, I'm very slightly inclined to give a tiny edge to the expanded flat (below), which would normally be expected to test the lower blue trend line, or at least to break the low of 5923:

INDU broke its lower blue trend line and a sell-off ensued:

And INDU has now firmly broken down from the triangle, coming very close to its first target zone:

In conclusion, most of these patterns suggest a fourth wave bounce is due, followed by lower lows.  There's always an outside shot of the decline wrapping up early or what have you, but at present there are no indications of such.  Trade safe.