If the Russell 2000 gives up 1,350s then a drop to 1,150s could be on the cards. Things could get ugly if this scenario plays out.
Those who played the spike high in the Dow as a short will be feeling good after today. The next downside target is 21,500 which is a handy reward for those going against the prior bull trend.
The S&P also took a hit but the index did something similar in May and recovered. Don't be surprised if there another like bounce tomorrow. If you are looking for a recovery bounce then the S&P is the index to watch. There is an On-Balance-Volume 'buy' trigger to work off too.
You've now read my opinion, next read Douglas' blog.
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Dr. Declan Fallon is a blogger who trades for fun on eToro and can be copied for free.
. I invest in my pension fund as a buy-and-hold.