The same bearish pattern is playing out on the TSX, S&P 500 and DJIA.
When there is a very sharp selloff it is typically followed by a pullback to the upside and then another leg down.
That second leg down sometimes stalls at the prior low, but can also scream right through it.
The pattern only looks at the first two legs down. If the price makes a lower low, then potentially a full reversal is in play which would mean more legs to the downside. For more details on this particular pattern, see this article: vantagepointtrading.com/strong-trend-reversal-trading-strategy/