Sell off overnight was expected, but since we are over the downtrend channel, the question is - will the channel act as support at 3720 area and then we rally further to the 4k area (yellow arrow)? Or - do we break below the channel again and make our way down to 3500 as I originally thought, and still lean towards (red arrow). A breakdown would make the weekly candle look like a failed breakout from the channel - bearish. A breakup would make the weekly candle even more bullish than it already is.
I'm not totally sure which is going to happen so I'll watch any reaction if/when we get to 3720 area. Good luck!