So far this market decline can fit into an impulse, but it still may have the 5th wave waiting to get completed. Only a true impulse can keep compounding as the waves can build in a 1-2, 1-2 fashion.
We may still need more downside before the first important wave 1-2 set has shown itself and it usually takes a minimum of three sets in wave 3 to be properly extended. Any
5th, 1-2 set would just about be impossible to see and therefore impossible to count.
As soon as this does not happen then chances are we would just be in a correction and we would have to look for the correction to end, and then even push to newer highs. Any other pattern can also be in play so at the beginning of any reversal the impulse can fall apart very quickly.
The sooner we realize that the impulse is no longer working the better. One option is we get a 5 wave impulse type wave structure heading down, which would be 5 waves in Minute degree and basically end up looking like a big crash with everyone screaming it's over and the bear market is here.
Of course, as soon as they do that chances are good the markets will stop falling and then really roar and retrace the entire crash and even push to new record highs once again.
Markets will never do what the public thinks it should keep doing as if they did, everybody would be rich, as the 99% could join the 1% very quickly. We know that, that will never happen.