Typically when a stock or index has been below its 20 day Bollinger Band for multiple days it rebounds fairly strongly. There are of course some exceptions where the market moves sideways back into the bands and continues lower. This is more common during a bear market, which we are not in at this time. I also notices that the RSI is below 30, which is commonly considered to be oversold territory.
I suspect that even if a rebound does occur, the bears will try to push the market down again. These are highly risky market conditions, so be careful and wait for additional confirmation before entering a long position.
I suspect that even if a rebound does occur, the bears will try to push the market down again. These are highly risky market conditions, so be careful and wait for additional confirmation before entering a long position.