However, as illustrated by the US500 CFD (S&P500 future) buyers seem to come back in. Short term selling pressure could be on pause. The Index CFD (future) is approaching the 200 SMA which now acts as a resistance level.
Market could trade higher over the next couple of days possibly to around the 4,500 level. The trend is however, still down on short term and medium term and more volatility should be expected. Selling pressure is likely to resume if the Index gets rejected below 4,500.
However, if this is a 5 wave down trend we are witnessing a move to the 0.618 Fibonacci retracement level at 4,546 in a 4th corrective wave is not unlikely and will not demolish the bearish picture.
I have drawn some arrows to indicate a possible scenario but please bear in mind that a 4th corrective wave is usually a bit complex correction between 0.382 and 0.618. (Likely an ABC or ABCDE corrective pattern) but it must never go beyond wave 1 i.e. not above 4,581. If the it does the picture is demolished.