TECHNICAL ANALYST: The Stock Market Just Broke Through A Key Level, And Now Look Out Below

Jonathan Krinsky, a technical analyst with MKM Partners, weighs in on the market selloff.

Yesterday we talked about the potential volume pocket above 1869, and how that was likely an important line in the sand for the bearish case. That represented the upper end of volume based resistance, as well as the 0.618% retracement of the decline from last Friday's highs to Tuesday's lows. Given the weakness overnight, S&P Futures are now entering a volume pocket on the downside, which has room to the 1790 level. The 0.618% retracement of the advance from the February lows, to the April highs is 1793. That seems a more appropriate area for a better low.