As I noted previously, Monday the 26th is in a two trading day risk window along with Friday the 23rd. Given the recent slumping market, I expect that window to contain a low, although less likely, it could be a downside acceleration event. The other risk window this week falls on Wednesday the 28th according to my system.
Lots has been written on this site about current negative sentiment. Call me not completely convinced yet based on what investors are doing as opposed to what they are saying. Go to www.stockcharts.com and plot the daily closing tick ($tick) versus the SPX since the sell off started. Other than one day the first nasty week, by the close each day folks have at worst been only slightly negative. Last Friday they were giddily buying the dip with both hands near the close trying to catch "the" low. That is not the reaction of someone who's afraid. I am aware that so called smart money acts near the close and Friday was in a risk window that typically produces a low, but still you'd think the fearful herd would have been overwhelming if sentiment was truly that broadly negative.
Regards,
Douglas