Friday’s sell-off didn’t change the market outlook, but rather extended the base major indexes have been forming for the last couple of weeks.

It will be interesting to see how the markets react on Monday. The high volume indicates heightened levels of professional trading and a rebound Monday will suggest that professionals were buying, not selling.

The blue lines show the channel the S&P 500 has been moving within for the last couple of weeks.

I don’t expect to fall much further next week. Look for either a hammer near the bottom of the trend channel or a reversal day as the markets move back towards the middle of the channel.