The SPY has now hit my 5% downside target from Jan 17th where a bounce is likely. Keep in mind that the longer-term technical outlook remains bearish as we have several key sectors and indices recently breaking down on the daily charts as well as all short-term trend indicators solidly in bearish territory at this time. I won’t bother posting the entire string of 2-hour SPY charts, just the original from Jan 17th along with the updated 2-hour chart, showing prices just a hair above T2 and prices now down 5% from that original call for a 5% drop in the market. Notice how not only did prices reach that final (short-term) target but also made the expected reaction (bounce/consolidation) after initially hitting the T1 level.  Also as previously discussed, once prices broke below that trading range around 10am ET today, the selling accelerated with prices sharply moving lower to the T2 area. I’ve decided to reduce some short exposure here and will watch the price action around these level before doing much more.