Ban-Zhang: In the above thread I raised a hypothesis that I have paid attention for a while. I looked back to last 3-4 years, after a 15+% dive like this, most of rebound will fail when it reached 10-day MA area for the first time. It is not a fixed target but rather a general area. Nowadays it is right about 1200. Sometimes there will be whip saw around this area before a significant dive in the following a few weeks.
I wonder if it is possible to back test this theory.
HTers: Welcome any comments.