S&P 500 eyeing critical support

In the S&P 500, watch out for the strong support level around 2,800 (2.798,77, to be exact) – the Relative Strength Index is bearish and the Bollinger bands are still expanding. This indicates a high risk we will see another push towards support.

If buyers fail to close today’s opening gap, downward pressure remains intact. A close below the 2.798,77 support area is likely to trigger a further sell-off down to around 2,730. If we see a downward move to that level, a trend is confirmed. 
  
In case of a bounce from support levels, it is our view that a sideways market should be expected and not a push for a new all-time high.  
The past week's candles were characterised by fairly long shadows meaning intraday highs and lows far from the open/close prices. This indicates a nervous market. It also means that if support levels are not broken, the market is more likely to take a wait-and-see approach, i.e. trading sideways in a range between 2,800 and 2,900.