Everything seems to be coming together for the intermediate term low scenario.
The beauty about this scenario is that it will be either proven or dis proven in very quick order, so we will know exactly where the market stands.
At this point we could still get a bit more downside, but it should be nothing of consequence if this scenario holds true. The other item that will give us a heads up is whether or not the market begins a very sharp and steep rally from here as the current scenario would call for just this.
Until this market has proven to me that we are entering a sharp rally phase I will continue with my step by step allocation. Currently I have 25% allocated to available equity resources and I have covered all of my hedge positions, so you might say in a way that I think the low is in place.
The only strong reservation I have is that I really would have liked to see more pessimism come into the market on the correction, but hey, the market certainly never makes it easy and that is what I really love about it...... A Never Ending Education!!!