Looking back at past instances of 6 days down in a row in SPY, there have been a few nice bottoms which have been caught within the next trading day or so, but overall the downside momentum was very strong and the rallies to follow were often brief and not as consistent as would be nice to take any type of trade.
We are in such rare territory here, that there are not enough instances to get a strong data set from.
At this point I would think that the October low in SPY has to be a target before a more lasting multi day rebound occurs. Most of the prior instances of the washouts we looked at filled the big gap down within 1-2 days. SPY didn't manage to do that here suggesting at least short term weakness I think.
It seems best to just hold tight here, another more obvious trade opportunity will likely arise int he coming few days to couple weeks I think.
Pete
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