I think if we can get under 3700 a big drop will come very soon after.
Adding shorts here and will trail stops. Bounces in the 3720 - 3700 I'd expect to be common but any big enough to break the lower lows/lower high structure.
If we can break over 3785 I'll exit most of my big shorts. We might trade back up to 3800 or so even in a bear pattern. Would be looking for new entries into rallies if that happened but get out my shorts if we cna not hold the lower highs pattern.
If bears do come from this level and do break 3700 I think we might see really strong selling. The previous drop setting the tone for the next one. Seeing big moves like that back to back is very rare - but they can happen.
Notice the Focus on the Employment number this week --A strong number means FED hikes continue -- the FOMC minutes tomorrow f and the CPI number next week --Last CPI number killed it and one over 9% would be Perfect next week.... Anyhow good luck --I too am short and all of a sudden builder stocks are to the moon :-(