Short term oversold but medium term oversold weeks away...

From the last post, the SP500 did rallied another +2% before turning down. The rally high of 2116 didn't quite make it back toward the all-time but it did make it back above the breakdown point in mid August. Being short term oversold, will expect the stock market to attempt a short term rally by mid week after some brief selling Monday and Tuesday. The chart illustrated below shows the SP500 broke out of a Double Bottom pattern in early October and reached around its upside breakout target at the beginning of November. I anticipate a similar but smaller Double Bottom pattern could be forming in the coming weeks. The middle section of the rally should run into resistance and selling near the 200 day moving average (currently at 2007) and then a retest of this week's low to be follow. By that time, the stock market should be approaching medium term oversold and a setup for another move higher. I will update back in a several weeks on how this stock market scenario is play out.