After a traceback and hitting neckline resistance, the SPX rapidly resumed its decline to the head and shoulders break target of 3500 as shown on this chart.
Failing to hold that line will result in a further decline to the 3200 level.
Looking at overwold RSI WEEKLY levels, i would venture to guess that we'd see a bounce (to what extend, i do not know) around either of these two areas. But in order for there to be a complete reversal, we will need to see the VIX hit 50 or higher before there is total capitulation. But without this, we may see continued, griding decline. We also want to see a rise of RSI off the bottoms in order for this to happen as well.
Comment
⋅
Well, we shall see soon enough if this holds true.