Based on the market's close today we had a MAJOR SELL signal in the DOW SPX and NDX - it's something called an OUTSIDE DAY - this is a pretty powerful signal and it marks major changes in the trend. Same thing happened in MARCH when we bottomed.
Essentially you get a market making new highs (or lows for a bottom) then a violent reversal and a close at the lows (or highs) in the opposite direction of the trend.
Now the trend reversal may be short term for only a few weeks and should be sharp/violent. But it may build into something more - there's no way to tell until you see a BUY signal.
Based on the $$$ chasing anything with greater yield then treasuries its hard to believe this will be much more then a test of the 50 dma. ES (S&P futures) support levels are
ES 1034 then 1022 near term targets (currently 1058 with a 1075 intraday high today) with 998 +/- 10 as major support near the 50 dma
If we follow the pattern of 2003 the Sept sell off took us from the year highs down about 7% in the space of 9/18/2003 - 9/30/2003.
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