It’s always in reference to the time frame of chart we’re on at the time. This one happened to be a 4-hour chart. So it’s somewhat of a near-term look at the market. So those white arrows I draw are where I think it could go fairly near-term (hours, days, week or so, etc.).
Where we’re at in the overall market…these small legs down can help kick-off larger legs down though too (such as these potential move on the daily chart, that could play out over the coming days/weeks/months).
And that can spur selling that kicks off an even larger wave of selling that can unfold over the coming weeks, months, year, etc. on the weekly chart (bottom chart below).
The more the market goes down, the more people are in the red and the more people are apt to hit the sell button. The more the market goes down, the bigger that pool of people gets that are in the red and the more likely they are to be emotional and further hit the sell button. So, it starts a (negative) snowball effect that builds overall until its wrung out all of the sellers (those that were going to sell). Sometimes those negative snowballs build quickly and unfold over shorter periods of time (weeks/to a few months) and sometimes those negative snowballs build slowly (death by a thousand cuts) and they can unfold over many months to a year or two, etc.
Hope that helps.