The techinicals of the DJIA is extremely bearish. A triple top has occurred at the 138.2 level of that FIB line which I have drawn on the chart below. The DJIA could drop to 12250 or even lower to 11800. This is the panic that I have been waiting for.
In the past months, US equities have been very bullish. The markets kept edging higher and higher. People were getting complacent as evident from the low VIX. At that second top, noob investors were trying their luck to bring the market higher. The psychology here is that stocks always go up in price. However, it failed, and noobs were getting owned by short traders who started toying on fear. Now we finally got a bearish short term market.
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