I think the pullback isn’t over yet for 2 reasons:
- Could be a Bear Flag in the forming. Usually a down leg strong like today shouldn’t be over by the first rebound, at least there’s another down leg ahead.
- If you believe what I’ve believed that VIX usually leads then the breakout of the VIX should imply that SPY will breakdown below its Dec 31 lows.
The good news for bulls is ChiOsc is way too low, so very likely there’ll be a rebound at least tomorrow morning.