US stock markets kicked off the first trading day of 2016 pressured following sharp losses in China's stock markets. The Shanghai Composite Index fell (-6.86%) after weak manufacturing data. SPY 4H Chart 1/4(click to enlarge) As we can see in the 4H chart, the SPDR ETF, which tracks the S&P 500 was in a sharp bearish correction towards the end of August. Price has since recover but was pressured again in December. In fact action since November has been choppy and the structure of this price action looks corrective. Now, today's decline was aggressive so there is some concern that there will be further bearish correction. On the other hand, the dip might have provided an opportunity to buy on a dip if you believe that the stock market will be bullish Q1 2016. From a technical standpoint, the current dip will be challenged by a rising trendline coming up from that August low just below 183. I think there is still some very short-term downside risk even in a bullish scenario. I am looking to buy on this dip. But if price continues to plunge throughout the week, a break below 195 would signal to me that there is further downside risk back towards 183. So as long as price can hold above 195 this week, I am on board for buying on this dip.