“As far as I’m concerned the technicals are in tact, says Guy Adami. We said the S&P would over-correct to the upside and trade up to 1130 and then turn lower — and it did. Now we’re likely in the next leg lower. We have to see what happens as the S&P trades down to the lower end of the range – around 1040 – will it hold next time we test it?
The patterns in the S&P suggest that support will not hold this time, adds Oppenheimer’s Carter Worth. My persumption is we break lower. I think we go to 980. I don’t think a great crash is coming but we are clearly entering a period when the downside should be the focus of investors.”