[isatrader]

I know this isn't exactly Stage Analysis per say, but i would like to discuss it with someone.

Am I the only one concerned the breakdown, of what I think looks like a bear flag? To anyone who might not know, a bear flag is a sharp decline (flagpole), followed by a consolidation (flag). During a bear flag volume stays high due to the market panic. 

Furthermore i'm kinda concerned about the pullback, of which we are experiencing. I find it worrying that the market is knocking on its 50d MA, while only 29% of stocks are above their 50d MA. It seems to me, that only a select few stocks are driving this pullback.

Just to be straight: I'm currently not holding any positions, I'm just intrigued to see how this is going to unfold.

You can use Stage Analysis on multiple time frames. One of my favourites for fine tuning entry points is to use it on the 2 hour chart with the same settings as the SA weekly chart. For example, the current S&P 500 chart shows as a developing Stage 3 range on the 2 hour chart. Obviously like any Stage 3 it could resolve in either direction. But it does give additional information, as if it does resolve higher after consolidating for a bit, then it may invalidate the bearish argument. And vice versa if it resolves downwards from the range then it may invalidate the bullish argument. Again, this is only one data point, but it all contributes to the Weight of Evidence.