Remember -- this is still a very bearish chart.
-- Prices are below all the SMAs
-- All the SMAs are moving lower
-- The shorter SMAs are below the longer SMAs
BUT --
I drew three lines to show the points where I think the market should consolidate between. Remember, the market has dropped hard.
We're at 2002-2003 levels right now. So this is fundamentally a good place to consolidate simply from a time perspective. We're also very oversold still (and will be for a bit).
