Sell-off continues in the market this week with even more decline today.
Concerning for bulls? Yes. But it was concerning for the bears in late-October of this year.
So. instead of getting swept away by fear or emotion, let's see what the charts has to say about the action we are seeing.
N:SPY PRIMARY UPTREND
- We are now back at the primary-term uptrend support level (see arrows)
- This is the level buyers would need to see immediate bounce before the bears completely take over
- Technically speaking, this still is the vicinity of potential higher-low in the intermediate-term (meaning, if we bounce from here, it could still served as a higher-low)
COMPARISON
- Back in late-2011, "Last Level of Fib." was the important level to watch
- Today, we are right on the "Last Level of Fib." which is an important level to watch
- Last few months, price-action does look concerning (bearish) and looks heavy (the way it fell), meaning, sentiment is pretty bearish as of today
- Psychologically speaking, the market will test the limits of the bulls and bears to its most extreme level before it makes its decision of the direction -- in early November (just few months ago), it looks like the market was ready to thrive back up; but today, it looks like the market is ready to crash = "extreme levels"
- Next 3-5 trading days will be very important as we are trading at a extreme pivotal level