S&P 500 breaks 1,900 ‘trapdoor,’ where to next?

Published Wed, Jan 13 20164:34 PM ESTUpdated Wed, Jan 13 20164:46 PM EST

U.S. stocks plunged Wednesday with the selling accelerating after the S & P 500 broke through a key level technical analysts were watching as support. With this level gone, watch out below, said these market analysts, who solely study charts to make buying and selling decisions. "The S & P 500 broke below 1,900 and that triggered a kind of trapdoor effect," Art Cashin, director of floor operations at the NYSE for UBS Financial Services, said on CNBC in reference to the market's drop late Wednesday. The S & P 500 last traded at 1,900 in early October of last year. So when will the selling stop? Chart analysts gave us the next levels to watch. Source: TradingAnalysis.com "The S & P 500 is still contained in the uptrend channel sourced from the 2011 European crisis low," Todd Gordon, founder of TradingAnalysis.com , told CNBC Pro. "The lower end of the support should intersect with price at 1,780 with the current downward trajectory," he said. The takeaway, according to the technical analyst, is that 1,820-1,780 must hold as a support zone in order for the S & P index to avoid its five-year uptrend, which could cause the market to revisit the 1,600 level, or 15 percent lower from here. Read More Mounting calls on Wall Street for $20 oil Since reaching an all-time intraday high of 2,134 in May of last year, the S & P 500 is trading in correction territory, down 11 percent. Source: MKM Partners "Our 2016 outlook was 'Stealth Bear is Revealed' and we think very quickly that's becoming apparent, that we are in a bear market," Jonathan Krinsky, chief market technician at MKM Partners, told CNBC Pro. Krinsky believes the next area of support will be around the August./September lows at 1,860-1,870, before the market reaches the April/October 2014 lows of 1,820. "This is not a 'buy the dip' market, it's a 'sell rips,'" J.C. Parets, Eagle Bay Capital's president wrote in an email. "So while we might get a rally soon, I think it will be short-lived and it needs to be sold into. Structurally, we're heading a lot lower."

A trader on the floor of the New York Stock Exchange.

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U.S. stocks plunged Wednesday with the selling accelerating after the S&P 500 broke through a key level technical analysts were watching as support.

With this level gone, watch out below, said these market analysts, who solely study charts to make buying and selling decisions.

"The S&P 500 broke below 1,900 and that triggered a kind of trapdoor effect," Art Cashin, director of floor operations at the NYSE for UBS Financial Services, said on CNBC in reference to the market's drop late Wednesday.

The last traded at 1,900 in early October of last year.

So when will the selling stop? Chart analysts gave us the next levels to watch.