Where will the market go from here

In a nutshell, in the next 1-2 weeks, S&P will likely go up to meet its 50 day MA (red line) around 2100 but then it will resume its downtrend again and test various support lines. The most likely scenario for me is that S&P will be bottoming around 1990-1950. But if the situation becomes really ugly, then it is also possible S&P may go down towards the bottom of the last Oct correction below 1900. We may likely not see this but we need to keep this in mind as well.

This is what I predicted early July when I got quite a few responses saying I was too pessimistic as all the data looked quite positive at that time. You may wanted to check the pathway I paved for S&P then. It almost exactly followed my script (the yellow line below). Now with the brutal crashes in the past couple of days, there was enough panic in the market and we do smell capitulation. This is not what you will see at the top but more so at the bottom, even in a short-term. Actually all the technical indicators show an extremely oversold condition, which often precede a rebound. With this kind of panic runaway, I'd think a rebound could be quite strong and fierce that may start Monday. I think virtually you can buy any stocks and you may likely make some quick money. Of course I'm not suggesting to blindly buy. So where the market may go in the next few weeks? S&P has broken two major support lines, one around 2050 and the other 2000 (green lines). Naturally when the elastic band snaps back after stretched too much, it won't be a slight move. It will first try to break out 2000 but more likely it will try to kiss 2050 if the momentum is strong enough. However, keep in mind S&P has been technically damaged significantly and it will take time to repair. There is still a chance it will resume its downtrend to test the next support around 1860. But first we have to see if it can hold up at the current important support at 1970.