Trend Line Target
The longer S&Ps stay below 821, the more likely they will test an important trend line at 818.50. This is a critical support area, as outlined in the Morning Meeting.
If S&Ps do test this area, we’d have to see a bounce to the upside to avoid another selloff. If not, the targets below the trend line are 817 and 815-814.50.
On the upside, there will be a potential reversal pattern in place if they can get above 823.50. If that happens S&Ps should try for 824.50-825, and later 827.
For the Nasdaq futures, as long as they are below 982.50, the risk is still to the downside. Targets include a large cluster at 979.50-979- 978-977-976. On the upside, Nasdaq would have to get above 987 to attract buyers.