Will the downward slide continue or is it a bear trap?Yes MLS...

Will the downward slide continue or is it a bear trap?

Yes MLS lost 1 pip to finish at 4.4c. Our volume was on decent without being very high, just over 2.2m shares traded. Still in the same zone now.

ASX Li stocks had a small decline today. Of the 54 stocks that I track, average loss was 1%.

Overnight US Li stocks were also weak. Average decline was over 2%

What next:
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Yesterday US markets had a big fall. SP 500 lost nearly 1.5% and is now at 3941. ASX too was weak but lost less, around 0.85%
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SP 500 after trading for few days above 200 day moving average is now well under it. There has now been 4 days of decline, last two days being big ones. It has come as a surprise as there were no big economic numbers to drive this. It is now broken some support. The bears are in control, if it falls further, a hold above 3900 is crucial or it could go to around 3810 or 3750 - which are some support and gaps. On the up side, need to regain 200 day moving average.
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As I had been writing in last few weeks, there was good chance of reaching 4100 but not sure what would have happen after that. We did reach there and are now coming down. Many analysts had been calling for a 20% drop in SP 500 to 3100/3400 level. They feel after last 2 days, the slide has started. But many other still feel that big drop may not happen now, we have to see another decent bounce before it may reach a decisive stage.
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So are we going to slide further, or is it a bear trap? For those playing long, there is some hope that it may be a bear trap. No certainity but possible. Three things I watched and I feel there is a possibility of bounce. First Dollar Index did not gain as much as SP 500 dropped. Similarly Yields did not increase that much. So these 2 lead indicators are given a signal that this drop may be a trap. Third thing is HYG (High Yield Bonds) they did a higher low whereas SP 500 did a lower low. So a divergence has been found, and its generally considered that people playing HYG are smarter, so they are also not buying this drop. This divergence usually means SP 500 will increase. So there is a chance of a rebounce, but we need to keep an open mind and follow the price action.
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Personally I felt there was some chance of the bear trap theory on the three things I mentioned. I bought a number of stocks today - its still dicey but thought will take a chance.
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So what will happen tonight? US Futures slightly in green. Asian markets mixed. The next big economic data is on Friday - PPI data. Tonight some non-farm productivity and labour costs. Although they are not very significant, markets are on tenterhooks and react violently on any data. So anything can happen. But after 4 days of drop, probability says there should be a green. Also good chance of a bear trap - and if it eventuates could cause a short squeeze and decent rise in indices. Will that happen? Lets hope so. All the best.