US Stock Markets Slump Again

S&P 500 Technical Analysis

The S&P 500 has dropped significantly in the futures market throughout the trading session, as it appears that risk appetite will remain low. This has a negative impact on the S&P 500 futures market, and it now appears that we will test the bottom of the most recent selloff. The market is also preparing to form the "death cross," which occurs when the 50-day EMA falls below the 200-day EMA. While I am not a fan of this signal, I acknowledge that it is one that a lot of people will pay attention to, and therefore it may become a self-fulfilling prophesy.

The 4100 level beneath has served as a temporary support barrier, but I believe it is about to be tried once more. It's worth mentioning that during the last trading session, we created a gigantic hammer, implying that there's some support right below. If we were to break through all of that support, the market would be on the verge of a free plunge. This would almost likely attract everyone's notice and might even cause some fear.

At that point, the market would then more than likely sell off quite drastically. The market would have to break above the 4400 level to even begin to look healthy and like it could be an up-trending market, or even one with a chance of recovery in general. At this point, it looks like we are in serious trouble.