The XAO continued to decline and invalidated the notion of an ending triangle for this correction discussed in the last XAO Short term post.
There is a little further clarity with the XAO, specifically two flat corrections joined by an intervening 'X' wave - Double Flat correction. The flats contain the right structure with the 'A' wave being a 3 wave move, and the 'B' wave retracing at least 61.8% of 'A'. Wave 'C' being a 5 wave move. The 'C' wave in the second flat is a little unclear, so there's still potential for a little more downside. I'm happier with this count as it seems to fit better with rules of Elliott Wave (and the Glenn Neely extensions).
There is an alternative count that is bearish and would come into play should the short term low be broken but it requires the XAO to correct upwards before an aggressive down tread commences.
The primary count is still to medium terms highs before the real fun begins.