Yesterday the market dropped right into the light green rising trendline, where support has been so many times in the past, and bounced once again. But it's got a different look and feel to the charts this time around. The huge 100-150 points bounces in 2 days hasn't happened after getting the RSI oversold. Instead we see the RSI's just chop around just above oversold with small bounces only on the market that get sold into each time.
I can't see the future of course but this just looks and feels like a big drop is coming. I mean one that shocks everyone, possibly down to the falling purple trendline that I drew back in June to show a wedge pattern with the upper purple trendline.
Again, no one knows for sure but I can't see anything bullish in these charts yet. As we all know it's easier to call the market when it's in an up trend then down trend. You just watch it get oversold and "buy the dip"... pretty simple. And it works great up until it doesn't. I think we are at the "doesn't" moment right now. And this week is the time when the bears have their best shot. Lets see if they can pull it off or not. Have a great day.