The S&P500 futures have suffered a large one-day correction today, with day high at 3584, and day low at 3424. Today’s fall has decisively broken the recent parabolic uptrend (curve line marked in the above chart).

The uptrend support trenline is coming at 3350 level, which is still about 90 points below current market rate. Now, the futures will surely need to test 3350 before getting any reliable or durable recovery. Below 3350, fresh breakdown will happen, and the next proper support is coming at 3200 level, which would be further 150 points below, or 240 points below current level.

The S&P500 futures will try to bounce back over next 1-2 days towards 3460-3480 and that rise can be used for selling, by exiting longs or initialing short positions. The futures will find it difficult to cross 3500, so that’s should be the stop loss for any short trades.

[Bonus Trade]
Sell at 3460 for Target 3350 with Stop loss 3500.

Update: The above trade started and completed within one day on Sep 4th!