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On Friday before the close, we took a little time in the DayTraderHotline webinar to look back at recent market drops like the current one to see what happened next. I don't know that what's happened four times since August 17 will happen again here, but the point is, it would not be wise to bet against it.
There is AT LEAST at 50/50 chance that sometime on Monday or Tuesday will see the start of a multiday rally. With four out of the five most recent similar drops in the market ending just that way, one could argue that the odds are as high as 80%. I do not make that case, but I am saying that it would be silly to assume that there is more immediate downside here. Don't risk being part of the short-squeeze that has fueled sharp rallies from drops like this four times since 8/17.