What's funny is that looking at just this chart, and looking for a similar pattern before with a big bear bar that closes close to the low, you see that on Oct 30 and Jan 29, both of those bars were followed by a nice rally. Perhaps there is something materially different this time given FOMC this week, but no need for fear just yet.
Two things *I* note on your chart... 1) Currently trading in a "lateral" formation. Action is in the shadow of the week of May 14. Simplistically, but with certain exceptions, 2 consecutive closes outside of the shadow boundaries, high or low, are needed to end the formation. 2) A closing high was made the week of June 11. An intraday high was made the week of June 18 which was rejected. So in a nutshell, until the lateral formation ends, let the shadow be your guide.
There always seems to be a bid in this market. The above chart was not meant as a prediction - just a warning that a big red weekly bar doesn't necessarily trigger a sell or continuation lower. At least in recent history.
This has been the toughest trading short mkt I’ve ever seen for the last 6-8 months . .Like last night . It finally looked like we might see at least some follow threw to the downside .Traders jump on the short side . Go to bed and wake up and stopped out yet again or worse they held and down big .Till were down 10% or more and loosen up not even worth messing with a short outside a 1-2 hr trade .In 2021 95% of my trades have been longs