Even with the recent sell-offs, S&P 500 is still on the overall upwards moving . We would need to see a move back to its recent lows of around 2530 to consider shorting this market again. For now we are quite neutral on the S&P 500 and may trade within a range for the whole Tuesday. This would prepare the index for a potential big move on Wednesday. We can see that on the 4h chart, S&P 500 is within this newly formed and we believe that it might stay there for today. It could potentially go to the lows of around 2620 or even 2600.
If there will be something that will round up the bulls today and they will decide to charge the index, then look for a test of the downwards shown on the chart. If this doesn’t hold, then 2670 should be on your radar.