A market "probabilities" newsletter says we may bounce next three days.
The probabilities of going higher are 3:1 for the rest of the week according to Sentimentrader.com. He's done an options week study with very similar market parameters as this week. Down Monday and Tuesday, more than 1% each day, closing near the lows, McClellan Oscillator below -7, RSI(2) <10 two days in a row.
The average return (in the S&P 500) over the next three days was slightly over 2%. 3 out of 4 times.
Also, the equity only put/call ratio spiked today the highest since the March low, and is a fairly decent extreme oversold/snapback indicator.
I'm still thinking there's a shot at $9.50 tomorrow or the next day. Maybe even $10 before/by Friday.
This is my bias, for my long SLW position but it needs to be watched for sure, as price action and supports giving way are more important than 'history'.
(Still thinking I bought it right today near the 50-dma.)
I got my 1000 shares back today but IMO this is another 4-6 week correction I wouldn't be surprised to see 8.20 area by Friday. General market may be in a process of rolling over as well and if that's the case we may still have some great deals coming in the next weeks and possibly months. If the markets are in a process of rolling over I'm guessing we'll get initial hit like last year but won't be as hard as it was then and IMO PMs especially gold will began to rally earlier and with it silver too. I still think 1200 gold and 20 silver is in cards by end of the year even if markets began to crash. I hope I'm wrong but I doubt we'll see SLW at 10 this week.