Buy on bad news, sell on good. If we take that approach, it seems like a pretty good buying opportunity just on the news that the USA was downgraded from AAA to AA+ by the S&P. Couple that with the fact that we saw the highest volume in a year and a price reversal, I think we just may have found the bottom. Take a look:

The previous trading channel is marked by the orange lines.

Counting Friday’s slight gain, we have fallen 10% in the past 11 days. That is an amount that any technician would consider oversold.

Furthermore, we saw prices dip 11,250 and recover to close at 11,444 (1.7% improvement) on incredibly high volume. Because of that, I think we have seen the bottom. To confirm this Monday needs to move higher on increased volume.