This two-year chart of the S&P500 shows a down trending channel demarcated with black trend lines. The middle thinner black line is the median line of the channel where the S&P500 found support in the middle of last week. The gradient of the down trending channel is an inversion of the up-trend red lines.
The horizontal blue support and resistance zones show price levels where the S&P500 has reversed in the past, both up and down. The second from bottom support zone provided support on Wednesday last week between 1801 and 1825 that coincides with the median line of the down channel.
Support held at the middle horizontal support zone in August last year between 1870 and 1895 when the S&P500 last fell sharply, however not this time around. Given that support did not hold at the 1870 to 1895 zone, it is likely that the S&P500 will retest the support zone between 1801 and 1825 and then move down to test the next support zone between 1735 and 1765, the bottom blue horizontal zone on the chart.