The broad stock market today seems to be finally taking a breather from a nearly parabolic rally over the last two weeks off the May 24 and 25 lows of the S&P 500 and DOW, respectively. We watch now to see if today's drop will be just a short-term dip or if it will gain momentum and fall hard into our next strong reversal zone coming up next week (June 26 - July 5). In the latter case we could see a final medium-term cycle bottom by July 5, and that could turn out to be a good spot to buy. My preferred alternative, however, would be to see any corrective drop now hold above the 45-day moving average with a bounce back up to new highs in next week's reversal zone. In that situation we would probably want to sell short at those highs for a sharp fall to the medium-term cycle bottom that would probably be in the last week of July. We remain on the sidelines for now.