Stocks have had one bad week, down 3 days in a row with yesterday being a real flush with the Dow down more than 600 points. This type of rapid downturn feels like the market is crashing, but when we look at the technical charts to see what's really going on, it's not actually that bad. From the chart below, we can see the S&P 500 is fully intact, trading within the uptrend channel and bouncing off the 50-day moving average. The big red candles and drop illustrates what this week has been like. It's touched this lower support line multiple times this year.
The Nasdaq 100 is doing the same thing, although the fall from the upper resistance line has been more dramatic. That long blue support line is a strong one. IF this support line is breached in the next few sessions, then we'll have a change in trend but for now, the upward channel trend is intact. Buying the dip here has been the winning trade for a year now and nothing suggests this shouldn't still be the case this time. There can always be a change in trend but we'll see it if and when it happens.