WOW! What a drop yesterday. And it's not likely over with yet. Yes, we dropped into support from the January 31st, 2020 low area, so a "pause" is expected... but odds are much stronger for another move down before any huge rally that takes us up to new all time highs again. The futures are up small this morning and it's hard to figure out the next direction right now. What I'll be looking for is some sideways action where bounces are small and quickly sold as that would make a bear flag pattern on the daily chart.
Bottom line here is that bounces are very likely to be sold. I don't know when the next big drop happens as there could be several days of chop, which could carry us into next week even. But again, odds favor another large drop before any strong rally up to new all time highs. In Elliottwave terms I'd say the drop from the 3397 ES high to the 3213 low yesterday was some kind of large A wave down.
Over the next few days (or less?) we should see the large B up, but I'm not expect it to be strong. Don't get me wrong, I'd love a strong bounce as it would be better to short it from. I'm just not counting on it. For today I don't see anything to do. Best to just watch for a bit to see where the market goes. Have a blessed day.
