Following yesterday's weakness, the market opened with a gap down which was quickly filled up to yesterday's lows around 1211.50, after that the market sold off hard, bringing the index down 24 points breaking below the daily 20 day moving average before finding initial support at 1187.50, from there it bounced 11 points to resistance at 1198.50 before the 2nd sell off wave came in leaving the S&P at 1183.71 that's 27 points below!
The market has broken the raising trend line and the 20 day moving average on the daily chart, those are strong levels of support and big damage has been inflicted, for the uptrend to remain intact we needed the market to stay above 1185
The next level of support is the rising 50 day moving average on the daily chart around 1167 and then 1155
Notice the big volume days on the two selloff's days, which indicate institutional distribution.
The VIX had a 25% pop putting it back above 20 at 22.81
Tomorrow is Fed's day so the market could bounce after the FOMC announcement, we'll see.
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