The S&P 500 has broken down from 4144, establishing new relative lows. Recall that 4144 provided good support and we appeared to have an inverse head and shoulders pattern forming with a neckline at 4306. However, this was swiftly rejected, which is a very bearish sign for stocks. We've also broken through the 'head' of the inverse H&S at 4144, but appear to be finding support at 4122, which is the last major level of support before a potential freefall lower. There is a vacuum zone below 4122 to 4068, then another one after that to 4009. At that point, we will be at the base of the 4K handle and free to test the high 3K's. If we are able to pivot from here, 4306 will provide formidable resistance.
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