It is late in the medium-term cycles of the S&P 500, NASDAQ, and probably the DOW (there is a small possibility that the DOW started a new medium-term cycle with the low of 25,372 on March 25). This means that these indices are due to top out any time now and start steep corrections down to their final cycle bottoms. A final cycle top very frequently happens in a strong reversal zone. The DOW's new high last Friday and the new highs yesterday in the S&P 500 and NASDAQ were not in a reversal zone so I suspect the current downturn in equities is just a short-term dip. Some lines of support to watch now would be 26,128 and especially 25,925 in the DOW and 2,835 in the S&P 500. A close below these levels would suggest a more serious correction is underway. If this market can push back up to make new highs in the current reversal zone (April 9 - 17), we would still be watching for a final top to sell short (possibly with a new bearish divergence signal early next week). For now, we will stay on the sidelines and see if those support levels mentioned above can hold. If this current corrective dip gets serious, we will be waiting to buy at the final cycle bottoms of these indices between now and the second week of May.