The picture-perfect downtrend shown in the chart could easily get bent out of shape by the time you read this, but the single-bar coordinates that define it thus far look promising for helping us determine whether the selling is likely to continue or perhaps even gain momentum. Bulls should be hoping for a bounce from a p midpoint support that is yet to be determined, since that’s what bull-market corrections tend to do. But if the midpoint pivot should be easily exceeded, or, heaven forbid, the D target of the pattern gets obliterated, it could spell big trouble for bulls. Traders can bottom-fish at p or D, but if at the higher number, camouflage is advised, since it closely coincides with the billboard-obvious low recorded on May 7.
