So we got the sell off last night after the false pennant breakout, ok good so far.
I'm still considering this a WXY correction, probably into next week, but it could be wrong. If I'm wrong, we'll keep heading lower towards the 200 ma on the weekly chart (right now it's at the 3500 area). The circled area would be strong resistance on the upside and needs to be taken out with an hourly candle close.
At this point, a further meltdown beyond most expectations is totally possible to finally break this market and have the Vix get over 40, so be careful with longs.
Oil target is 100, if it gets there today, that's an area to watch the equities reaction as well.