This is an approximation of how a SPY crash would look if it developed in a similar manner to previous large crashes.
I've elongated the move to show the shape/form of swings I'd expect to see as it develops in real time on smaller charts. The time axis is not to scale, I'd expect to see this happening quicker if it is happening. The daily chart would not look like this (Smaller ones may).
- First swing would be a 10 - 15% drop (We may be in that).
Second would be a rally to retest around current area of 430.
Into to the strong break leg.
shallow range correction with a false bullish breakout.
Hard downtrend down to test the previous lows.
I've elongated the move to show the shape/form of swings I'd expect to see as it develops in real time on smaller charts. The time axis is not to scale, I'd expect to see this happening quicker if it is happening. The daily chart would not look like this (Smaller ones may).
