Watch the S&P 500 closely

With Small Caps and Mid Caps looking increasingly weak, not to mention stock markets across the globe (FTSE, DAX, CAC), we’re keeping a close eye on the S&P 500’s price action. If this major US index does not hold/bounce from this level, the next area of support would be around 1900, a confluence of previous resistance (now turned support) and a parallel trend line running from the November 2012 low. Monitor this situation closely, curious investor. Price tells us everything.