2. from this point on, risk to the downside is MUCH bigger than the risk to the upside, until a weekly close above 40 weeks moving average.
3. counter trend rally toward 40 week moving average is common, and can be traded.
4. given the light green , I will not be surprised if the SPY drops to $88, as this is totally possible.
5. formation of the down trend channel signals the market is in trouble. However a break out of the upper signals the trend change of the market.