Using Mr. Fibonacci's magic numbers, from the 2016 low on the SPY we see that the retracement fits very well mapping out the support levels if the market continues to tank.
The 23% retracement of the last major trend is broken. Next stop is 38% or even of the trend down to 2400 points.
Interesting also to see the one year divergence in place and showing no signs of recovery.
It does not have to be this way, some major macro-economic news could change this. But the only news the market wants is rate cuts. And rate cuts are not good for the long-term.
Mr. Market will need to take his medicine to get better.
Current Trends According To DOW Theory:
Short-term - Down
Medium Term - Down
Long-Term - Up
Remember, all you traders make up only 10% of the of the markets. The biggest losers in the crash are the hedge funds and mutual funds and all the Algo Trader living on borrowed money.
Do not stay invested hoping for an up move, that will hurt.
As our Italian friend would say -
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