How Low Can We Go?

This has been an incredible week for the markets in general and SPY was certainly not left out. After the steep declines that we saw last week, I think traders will be looking for some relief from the downward pressure. That being said, we might see some accumulation at the start of the week and perhaps even a bounce back up to $194.00 on Monday or Tuesday. However, the pressure from the Chinese market turmoil as well as the new lows being created in the oil futures still leaves me bearish overall and I think we will see a retest of $187.50 by the end of the week.

TECHNICAL ANALYSIS:

• Candlestick: Solid Red Candle (Bearish)
  
• Volume: Solid Red (Bearish-Sellers still control market)
  
• Stochastic: Both %D and %K nearing zero, about to cross. May see sustained oversold conditions. (Neutral to Bullish)
  
• MACD: Histogram still negative, moving towards -2 range. Signal still overhead (Bearish)
  
• General Trend: Downward
  

Agree? Disagree? Any feedback is greatly appreciated! Thanks, and Happy Trading!