The dreaded and forgotten "Flashcrash Cycle" struck today like a bandit in the night. Notice each time the market slumped for days off of a major high, and then finally plunged in dramatic fashion.
In each case the plunge took the index down to near a bottom with sideways chop and a rally to follow. I expect the same this time as well. SPX probably has some sideways trade, with a little more to decline and put in a bottom soon, and then we should see another rally commence.
Last week we saw bottom Number 1. We are now approaching bottom Number 2.