Black Monday tomorrow?
Something tells me that Friday's market action is going to accelerate when the markets open on Monday morning. Friday's downward move didn't quite break the trend line formed since early 2016 the sustained weakness in the market is suggesting that the trend line will be an easy break. The latest move down has left the S&P sitting on the trend line so it's just a matter of a small move down on Monday that will confirm a possible major bear market in the making.
The charts are strongly suggesting that this downward move is nowhere near done and we may have a lot further to fall.
S&P:
Volume
Selling volume is still extremely high in the markets. Volume has steadily increased since 2008 reaching feverish levels as the blow off top rolled over and took a downward turn in early February. Rising volume in a falling market is generally a bearish sign and volume shows no signs of slowing down.
Fundamental analysis
There is plenty of bad news in the pipeline for the dollar and western markets. Not least is the Chinese oil futures contract, priced in Yuan, which launches tomorrow. In addition we are likely to see more carnage and fall out from the Tariffs and it's looking likely that we are entering a full blown trade war. One piece of news that has largely gone unreported in the mainstream media is the spiking LIBOR. The rates have spiked to the highest since the 2008 financial crisis. If banks are requiring higher rates to lend to each other that means that they a pricing in higher risk.
In summary I think that Monday will usher in the next major move down in the markets. I could be wrong and we might bounce off the up-trend line, but if not tomorrow, surely soon.
Sources:
https://www.ft.com/content/2d29b996-0d99-11e8-839d-41ca06376bf2
https://www.forbes.com/sites/garthfriesen/2018/03/25/does-the-spike-in-libor-signal-the-next-financial-crisis/#696bee3a74d8
For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.