downside: At this point, the S&P 500 Index SPX, 2.14% has a clearly defined 1-2, i ii downside in place and has indeed begun to follow through to that downside, according to Market Watch. So it looks like a crash in progress, and we will soon see if the heart of the third wave down will take hold. And with the U.S. stock market having dropped through its trapdoor, this week's price action will tell us if we are in crash mode. But since the setup on the chart is akin to the crash-like setups from fall 2018, in January 2016, in August 2015 and in August 2011, with it most resembling the market action of early 2016, we need to start seeing the market exhibit panic to the downside to be much more certain. This means that the market must break down strongly through this support early this week to maintain its structure as the heart of a third wave down. Caption outside of wrapper for normal article images As you can see from the attached five-minute chart, the S&P 500 is now hovering over the 2,735-40-point region, wherein we could only have an a-b-c structure off the recent highs labeled as alt a in yellow if it holds as support.
(news.financializer.com). As
reported in the news.
Tagged under downside, price action topics.