Above we have the weekly chart of the DJTA going back three years. I've noted when the index topped back in November 2014. Based on today's ugly close, it's now down over 17% from it's high - or within spitting distance of an official bear market. I bring this up because, as I've posted many times, the DJTA is leading the broader indices. That said, let's look at the weekly chart of the S&P 500.
So in the short term (ie. the next several weeks), I expect continued weakness until we reach our target of 1,800 on the S&P, give or take. From there I would expect a bounce as the Bullard lows will certainly be defended. After that, it's anyone's guess because who knows what the central banks will do. Until then, I would continue to remain defensive.