This is uncharted territory/circumstance. Nobody has a crystal ball so all I can do is give my 2 cents.

Now that said I can begin to make a bull case but I’ll let the chart speak for itself because there more bear$hit on the chart than bull$hit.

Of course the last candle is 1 week in and hasn’t printed so we can sort of rule that out, although it HAS made a new low so don’t totally discard it. Macd histo has NO divergence in this monthly timeframe. In fact it’s just straight down with no flinching. Also there is room to move down to fully test support. I’d put absolute make or break support in the mid-high 9700’s myself. That’s all the bear case, added to the current trend you have a strong case for continuation down.

As for the bullish side it’s mainly the fact that there was buying pressure on both the last tests of the channel lows. BUT buying pressure does not equal a reversal 9/10 times. If we slide to lows at/or above that support on dried up volume with histo divergence that would show me the selling pressure has dried up. The fact that there was heavy buying pressure doesn’t discount the fact that for every buyer there was a seller. The selling pressure though somewhat offset was undeniable and panic like that won’t likely turn on a dime.

Big volume is a warning sign of a possible flush though most often there is more price action left where the market probes further for buying/selling pressure (unfinished business). I have yet to see a convincing case of bottoming action. I’m pretty fond of this setup…If we were in a bull trend and I saw the reverse action I just described I’d say look out below…in fact this was how I picked the 14k top on the Dow a year ago.

People are on edge…based on my Volume Based Price chart put yourself in the auction along with the majority of the volume in this range. What would you feel if you just had 4 years of profits turn even or slightly red?

Still a bear bias for me, won’t effect my daytrades though thank god.