After Fed’s announcement few weeks back, the market continues to see a “fearful” sentiment as the investors/traders are fleeing in a hurry; with today’s -2.57% drop on the S&P 500 ($SPX), we can definitely see the sentiment of that.
Looking at things more of long-term perspective though, we are now getting very close to the market lows from August 25th to retest the horizontal and rising uptrend-support. I think 1840 – 1860 level is going to be very important going into next few weeks here. I would call this level “make or break” level as the market is going to decide it’s direction.
Technically speaking, we are still in a primary-term uptrend without the clear signal that the market has been reversed, so this is the level that could potentially change that.
Looking at things minor to intermediate term, it looks like the market is going to continue with it’s volatility. And if the buyers show up in the support-levels we’ve discussed here, 1990-level might be a level for a retest at least one more time as I think the dip-buyers might show up in this vicinity for a short-term bounce back up to the 1990-level.
However, anywhere below 1840-1820 on the S&P 500 ($SPX), more panic might be in-stored.