Carrying the thought from earlier forward, I do like the look of the thing we were in as an ending expanding diagonal still. That should mean that something completed there. It is possible that it’s the end of a very large structure.
If we’re bullish—and I am inclined to be here, for better or worse—we may count today’s price action as a 1-2 (in blue). It’s a little sketch, as it’s as deep as it can possibly get—within mere pennies of taking out the prior low (and SPY did take out its prior low).
But, I’ve noted the target for blue 3 on the chart.
I have taken a few hedges in case I am wrong. But today’s selloff was prompted by the Bank of England giving pension funds 72 hours to liquidate what they’ve been liquidating. That makes this a news-related selloff, and those can often reverse promptly.
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