An old friend showed up

We've got some bearish activity going on the weekly chart. I mentioned the red dotted line a while back as being the last, real line of support going back to Obama's economic recovery. As you can see, the Brexit crash took us precisely to it and then pulled back. I believe this line will hold. It's only if this trendline breaks that we can assume that the worst is yet to come. My feeling is that we won't unless the weakness in the market really drives the fear it should. But not much seems to be able to do that these days.

Make no mistake, though- this market is absolutely in a downtrend. In the short term we'll see tests of that dotted trendline.