Time and Price

The rally off the July low started 6 weeks ago has exhausted the time element.  The price got very close to the June highs, which exhausts the price element.  Now the selloff should last at least 3 days, so we've got till at least Friday.  But more likely, it will last a week, so we have until next Tuesday before the bulls try to rally. 
The 50% retracement off the July low to the peak on Monday would be at SPX 1070, or ES 1068.  That should be a good entry point on the long side.  We nearly got there this morning.

There was never much enthusiasm for this rally despite it being 120 points up in less than 6 weeks.  So we don't have a lot of excesses priced in.  This market has gone up despite steady mutual fund outflows.  I will give the benefit of the doubt to the bulls.