FXStreet notes that the S&P 500 has fallen sharply on increased volume to remove as expected key support from the 63-day average and early February price gap at 3792/74. Economists at Credit Suisse believe the market is set for a potentially lengthy consolidation/corrective phase and look for a test of support at 3694/78 next.

“We look for further weakness back to 3723, then what we look to be better support at 3694/78 – the late January low and 38.2% retracement of the rally from late October. Our bias would be for a floor to be found here, for now at least.” 

“Should weakness directly extend, this would suggest a more important top is in place and further weakness can be seen, with support then seen next at 3663, then 3636/33, with the 200-day average some way distant at 3467.”