Intraday Look and Analysis: Enough Red to Turn Your Head

We have seen an aggressive reversal lower since yesterday morning’s opening pop. While it seems as though we *should* bounce here, and dip-buyers have been successful this year to no end, when the market changes character it does so in brutal fashion. In other words, with the deterioration underneath the surface we had discussed over the past few days, I am not inclined to rush in to assume we must bounce.

All of the negative headlines and divergences do not seem to matter much until they do. And then, boy, do they matter.

On the five-minute SPY chart below, we can see a steep angle of descent over the past two sessions. A bounce here seems likely, but then again we have not seen a bloody close on the lows in quite some time. This is enough red to turn your head, which means I am not ruling out that bloody close this time.

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