The pennant has broken, bad news have been a catalyst. People are now officially in panic mode. Words of a second great recession are coming out. This should all die out within a week once we have reached the end of this perfectly healthy and necessary correction. Target 2450. Then its slow and steady to above 3k with strong initial recovery since we are so heavily oversold at the moment.
We're pulling back a little to the fifty percent fib. It may or may not go pass that, we will have to see for tomorrow.
@hankchef, So the speculation on this mainly comes from assuming the initial drop in Feb is an A wave down, followed by a B wave. This was the wedge that was broken before. So now the C wave, should be a reflection of the A wave, about equal in length. From a psychological prospective. If we complete this wedge pattern which would technically give us a double bottom, this will also be under the 200 ma. This is likely to cause further panic selling driving us further down the 200 ma to our original target of 2450.