The lower volume sell off today was most likely balancing the books from Friday’s option expiration buying. Price dropped back to the parallel 1×1 angle just above the 50 day moving average. The market is oversold and may find support at the 50dma. Remember that the bullish scenario is a 30 day correction from the June 11th high.
If forced, I can see 5 waves up off the March bottom. An A-B-C correction for 30 days would be great. A move down to the January top followed by a continuation of the uptrend in July, ideal. The January high is about 13% from the June top which would mimic the Dow 1938 mid-move correction.
Chart courtesy of Stockcharts.com
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