Market Hits Dowside Target
The S&P 500 has hit a downside target on the WEEEKLY chart.
The heavy selloff that begain in early October indicated that higher-timeframe players had began dumping stock positions; this was more than a simple pullback.
The weekly target was a price zone near the 50-EMA, around 2,730. That level was penetrated two weeks ago, and again this week, going even lower.
The 20-RSI has dropped just below the 50 level (where rebounds often occur), so market strength may improve over the next 5-10 days. A valid rebound would see RSI rise back above the 50 level, at a minimum, coupled with new momentum highs. So keep your power dry until then.
Now is the time to watch for stocks that are setting up for potentially awesome buy points. But don't rush. Corrections take time to play out.