According to my count, S&P 500
is now within the 3rd wave of the initial impulse wave of the bear
market which began on May 19th. The low point of 1833 reached on 8/24 seems to have been the 3rd of this 3rd wave. From that point until now, this consolidation is the 4th of the 3rd wave and is developing as a triangle. The triangle suggests a minimum downward thrust to 1842. I highly expect that the downward thrust impulse (which will be the 5th of the 3rd wave, completing the 3rd wave) will extend beyond that, to take out that 3rd of 3rd wave low, probably falling below 1814, which will also take out the low of October 2014 and lead to further panic selling.
One would typically then expect an upward retracement following a 3rd wave of between .382-.5 of the 3rd wave's length before the 5th wave begins.