UPDATE: Here are the market breadth indicators - move lower for wave 3 usually does not start at such levels. At such levels you are looking for a bottom because the sellers are exhausted.
McClellan Oscillator - almost touching oversold level. This is the second trough. It never recovered after the top at 2011 so we can say this is a new move lower. The selling continued even with the new ATH at 2019. That is why I think the top was at 2011 and since than we have a correction. McClellan Oscillator is one of my favorite indicators it never lied me:)
Fear Indicator VIX - again above the BB should reverse soon. The high was 16.75 near the previous one.
Advance-Decline Issues - almost touching oversold levels
NYSE New Highs-New Lows - at oversold levels.
If I look only the indicators I would say the indexes should start bottoming(of course we could see lower low 1960 or 1955)... the other option is panic sell off for several days to send the indicators to very extremely oversold levels like McClellan Oscillator -110.
I am not an EW expert and complicated patterns are not my thing. EW guys are questioned if the pattern below is allowed at all..... because expanded flat should be 3-3-5.
If this is the case a bottom is not far away. Bearish case is suspicious for me because market breadth indicators like New Highs-New Lows, Advance-Decline Issues, McClellan Oscillator are oversold and this happens around bottoms not at the beginning of a correction plus we have right translated bullish 40 day cycle which should bottom any moment.
It looks crazy to predict a bottom now but we will know soon and it is worth to keep an eye on this idea.
P.S. Do not get confused about the different ideas on the blog and in Internet hold the short and that is it:) we are not chasing the bottom for maximum profit.