We all knew this day would eventually come. That’s why players were playing a maneuvering game as opposed to buying. If you take too much heat, you’re not in control of your decisions.
SPY can easily drop to the 18 day SMA at about 407, which appears to be a level that has a chance of holding/reversing. A move to 395 is now intersecting the 54 day SMA. QQQ is quite similar but on a tighter leash.
Those levels will probably be defended. A move below that would threaten the technical structure of the intermediate term bottom. Even if that happens the picture is hardly dire unless the investor has too much size.
Ordinarily, a buy at the close here is semiautomatic especially with turnaround Tuesday. I’m not playing that this time unless I change my mind.