Less than a week ago, we penned an update on COMP that was aptly entitled COMP Signals More Pain Ahead accompanied by the following chart.

COMP complied yesterday, racing past our initial downside target to tag the next one at 13,213.50 before a massive bounce back to the .618 Fib.

Is it safe to wade back in?

continued for members…The bigger picture shows that COMP has barely made a dent in its rising purple channel. Even the modest target of a midline and red .886 tag – along with an official 20% drop – is still hanging out there.

While it’s clearly short-term oversold, the overall market isn’t yet done. I don’t believe it’ll get there without COMP – the most overpriced segment – leading the way.