On Friday of last week the S&P just did break above the down trend line. With today's move lower we are now set up for another attempt at a 1-2-3 reversal.
As of today the trading cycle is on day 35. The average cycle runs between 28 and 43 days. We could see another move back down to and possibly even another attempt at a 2b reversal before the final bottom of this intermediate decline is in.
I will be watching the buying into weakness data as a sign the smart money is ready to step in and buy any pullback. Insiders are already buying at levels never seen since 74.
We should be days away from a final bottom if we haven't already put it in.