The oscillator, the Percent and the all three show a very strong downtrend, which can be read as a "oversold" signal. The FED meeting is behind us and they didn't hike in November, which is positive for stocks (at least until December). Facebook’s third-quarter beat estimates (the data was “really good” said Brian Wieser, an analyst with Pivotal Research), therefore another downside risk factor is behind us. If recent history is any guide, there is now at least a chance for a dead cat bounce higher until the US election on November 8, 2016.
Long entry: 2090-2095
Stop loss: 2085
Risk: 5-10 points
Reward: 30-35 points
The issue is that FANG tech stocks (especially Facebook, Amazon and Google) were falling in the last days, because Silicon Valley doesn't like Trump (due to his anti-immigration agenda). Usually tech leads the market and they are the largest sector in the S&P 500. So again, I see next days higher odds for a decline.
CNBC: "The S&P 500 has just suffered its longest losing streak since 2008"
Reuters: "S&P 500 losing streak runs to 8 days as Facebook weighs"
Schaeffers Research: "S&P 500 Matches Great Recession Losing Streak"
Wall Street Journal: "S&P 500 Extends Losing Streak"
Bloomberg: "Stocks Almost Always Rise Before an Election. Not This Year"