One red week does not make a bear market
LONG TERM, weekly chart
Since last April/May when the “recovery” started, the WEEKLY chart has been long.
Looking back to the Covid crash starting in Feb 2020, using the default stochastics (14/3), long term folks were told to exit (red arrows), which saved them at least 1,000+ SPX points of the drop (depending on their exit price). The challenge was WHEN to get back in LONG.
Note: even the four-week pullback (flag) last September couldn’t turn the stochastics down below its 50 line.
Let’s say that long-termers will again wait until price pierces the 10/20/30 EMAs... they would sell just below circa 4000 (but that is a moving target as the EMAs will change).