Bausch Health Companies Inc (BHC)

[JLS]

Dipped into support zone, now what?

This first dip into the First Support Zone coincides with $SPX having corrected by a little over 50% of the total price rise from the area referred to as Earlier (sustainable) Trend. That's where the lowest Fib line is placed.

There are old-timers in the market who say that you should buy 50% retracements. Today's Close was just below that level. If there is an $SPX candle with unusually long shadows, either upper or lower, in the next few days, and the same is true in other major indices, then I would say that the correction is essentially done. Until the next one.

If you want to see an ABC correction, one could place the end of A at the Low last Tuesday (Feb 6), then the end of B was the High on Wednesday (Feb 7) and now the trade is in C.