In One Chart: The stock market faces ‘unlimited downside risk,’ warns veteran trader

The stock market opened with a resounding thud on Tuesday morning, as the Dow Jones Industrial Average DJIA, -1.58% , at one point, had shed more than 500 points. The S&P 500 index SPX, -1.68% and the Nasdaq Composite COMP, -1.83% endured even harder hits, down more than 2% each.

Read:Dow plunges amid corporate outlook, China selloff

So, you must positioning yourself for that tasty bounce we’ve grown accustomed to over the course of this stubborn bull market. Well, don’t, warns J.C. Parets, the technical analyst behind the All Star Charts blog.

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