I am sad to think of the reason for this kind of collapse, but definitely a pattern exists. Have a look at the MELI chart, whicch provides a blueprint of the pattern.
In a sentence - it is a expanding triangle, and then a retrace to between 0.5 and 0.618 and then a really strong wave down = 0.764 to 1.0 of the width of the megaphone.
In the case of MELI, we already see how it looks.
In the case of DJI it has not yet happened - but we have got to the exact retrace which should spell the end of the bear market rally. If this pattern is playing out, there would be relentless selling into Juiy, where we will find ourselves just above the 2009 lows. I'd say 1000 in SPX
In a sentence - it is a expanding triangle, and then a retrace to between 0.5 and 0.618 and then a really strong wave down = 0.764 to 1.0 of the width of the megaphone.
In the case of MELI, we already see how it looks.
In the case of DJI it has not yet happened - but we have got to the exact retrace which should spell the end of the bear market rally. If this pattern is playing out, there would be relentless selling into Juiy, where we will find ourselves just above the 2009 lows. I'd say 1000 in SPX