It proved to be an ugly day all around. Yesterday's recovery rallies were quickly taken out with today's heavy losses. Attempts to find support at 50-day MAs and/or channel support were pushed aside. However, these losses have some way to run before August swing lows are challenged.

The S&P could look to mount a new rally, although I suspect it will struggle to get close to 1,987.  If it can't move above its 50-day MA, or finds resistance near this moving average, then shorts will have an entry opportunity for a push down to August swing lows and/or 200-day MA.
 

The Nasdaq broke below its trading range on higher volume distribution. However, unlike the S&P, it's close enough to support (currently resistance) to be able to mount a challenge.  Bulls may find an opportunity in this index tomorrow.
 

The Russell 2000 took a big hit too. However, it's caught in a no-mans land between the bounds of the former declining channel and May swing low support.  It's hard to get a trade advantage, although the proximity to the July swing low gives an edge to bulls
 

For Friday, look for recovery opportunities in the Nasdaq and Russell 2000, but watch for a shorting potential in the S&P if buyers take the index close to 1,987.