The S+P 500 just fell through support. There's a chance it might rally back by the close, but otherwise support will be officially broken. The Nasdaq had already broken support last week, and the Russell broke support today. Only the DJIA is still above support.
So, barring a rally at the close, the next support to watch for the S+P 500 will be the 4000 level. 4000 doesn't have any real significance chart-wise, other than being a round number 'psychological' level. Below that will be the 20% bear market area (3840), which also corresponds roughly to the 38% Fibonacci retracement level.
The big question is what happens after the Fed meeting on Wednesday? There will be a 6 week respite before the next Fed meeting in mid-June, so will the market stage a relief rally, continue lower, or ? I'm figuring the S+P 500 tests the 20% bear market level at some point, either between now and the June Fed meeting, or following the June meeting, but time will tell..
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