Just as a reminder the S&P 500 broke the 38.2% Fibonacci retrace of the Oct-March move Friday and now is is no man's land between that level and the 50% retrace which comes in below 1250. All major moving averages are also below their 200 day moving average of course. Futures were down sharply Sunday evening but recovered this morning for whatever reason but this selloff is taking the S&P 500 back to where it was at the lows of the overnight session.
The "easy" trade today would have been a very bad open where shorts could cover and traders could flip long for a quick oversold bounce, but the market doesn't like to make it easy. The farther we go down from here the more 'stretched' we become in the very near term, and difficult for bears as well – it's been nearly straight down since last Tuesday – almost 70 S&P points. See chart for the Fibonacci levels I am referring to:
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