There is a classic chart pattern and a rare one at that called “railroad tracks.” That pattern describes the action in the indices the last two days. Railroad tracks point to distribution, i.e., professional selling. Because they often occur near a top, the pattern is a sell signal. (Mish Schneider)
Certainly ugly. Next point of possible return is the 1905-1910 level on the Gann line from the Feb low. Also the 200ma.
A steep decline, waterfall, may well be required. The MOB indicates possible turns today and a secondary one on 23 Oct.
Perhaps we bounce there today and try to recover into expiration next week.
