As I wrote in my previous post S&P 500 might close below 200 ema on a daily chart and it did. This really accelerated the fall and the index went as low as 2011.60 today. Although some bounces are expected real support does not start till 1980-60 area. Bearish momentum is really strong. Bearish head and shoulders pattern on the weekly chart predicted the fall weeks ago. A lot of investors talked about it for a few years, but it looks that only now their worst predictions might be coming true.
Despite the fact the fall to 1980 is highly unlikely today some fundamental data coming out from US might cause the index to continue falling lower till market close. You can see that other stock indexes have already joined the party and are falling too. Expect this process to continue till some fundamental data proves otherwise. By the way, US 30 has already broken its key support which was at 17000. If you are intending to go long, better wait for the market to show you when to do it.
Possible risk event is: Markit Mfg PMI (AUG P) – Expected: 53.8, Previous: 53.8.