Both the short-term 15-minute charts of the Wall Street Cash and SPX 500 index are setting up potential corrections of their respective intraday downtrends. After what was a dismal day for U.S. equities, the bears may be taking near-term profits since Wednesday's dramatic move lower which has brought prices near the July 30 lows, possibly forming double bottoms on each of these charts.

The Triangle pattern alerts on both these 15-minute time frames suggest that there is not only a near-term bottom in place amidst strong bearish sentiment, but that the breakout higher through downtrend line resistance could signal the possibility for a more sustained move higher. This would only occur if there is enough bullish momentum to carry prices through the highs of the Autochartist Forecast region (in gray), and then use this area as a base from which to rally higher.

The confirmation of a bottom comes not only from the congestion of the patterns themselves but also the two-bar Autochartist Initial Trend reading which accompanies both these alerts. Conversely, the low Breakout reading suggests that this may only be a short-term correction which in turn implies that sellers may see this move higher as an opportunity to short into the intraday downtrend.