As such, we will be looking for at least three wave push lower over the coming days and weeks.

Sector Moves: Every company in the Dow Jones index declined with the exception of Wall Mart, which is up a modest 0.15%, while only a few companies are trading above the break-even line in the S&P 500, from which 10 advanced more than 1%. Overall, this denotes the magnitude of the sell-off, which may continue during the upcoming Asian session.

The financials and the basic materials sectors are the Thursday's worst performers, both declining 2.8%. The financial sector denoted a negative momentum even from the overnight session, with the banks trading below the break even line in most developed markets. Turning to individual industries, only three managed to advance, with tobacco products up 0.5%, while drug stores and insurance brokers rose 0.4%. The rest of the industries represented in the U.S. market showed negative returns in Thursday trade.

Economic Moves: The economic calendar played a very special role in Thursday trading, practically moving the market from one side to the other. Pending home sales came in much better than expected, 6.4% vs. 0.9%, but the Unemployment Claims and the ISM Manufacturing PMI had a much bigger influence in the market's valuation. Ahead, the report calendar is relatively empty during the upcoming Asian and European session, but on Friday morning, the market will prepare for the NFP numbers. 

Crude oil for October delivery was recently trading at $70.50 per barrel, lower by $0.10. Crude oil was broadly immune to the selling seen in the U.S. market and it even managed to post some short gains for a few moments, as a report showed that OPEC oil production fell in September. 

Crude Oil Technical View:
Daily chart trend: Short possibilities. Main price points: 74.90. Looking for: Wave A

Oil prices were very bullish after Crude Oil Inventories in the U.S. prinyed at 2.8 million barrels. As such, our near-term wave count was invalidated, and the chart now reveals an unfinished red wave II) of a blue wave A leg.

We completely re-worked the count from 33 lows to 74.90 highs, and see that the market made a clear five waves up with the latest top at the 74.90 area, where there seems to be a top of wave 1). Elliot wave guidelines state that after every five wave move, the market should make three waves of retracement, which are called a correction. If that is the case, then black wave 2) is now developing with sub-wave A in progress.

Gold for October delivery was recently trading lower by $9.60 to $999.70. Unlike oil, gold was not able to hold the current valuation as the U.S. market plunged almost 2% and the dollar index posted strong gains. With the declines seen today, gold breaks again below the $1000 benchmark level.

Treasuries notes strengthened on Thursday, as investors abandoned equities for the safety of the debt market. The most active Treasuries were the 7-year notes, with the yield declining as much as 0.12%, and the 30-year bond, which saw the yield declining down to 3.95%, the lowest since April.