Global markets took a sharp U-turn as the markets were in turmoil on the back of large crypto currency sell offs caused by regulation fears and a crackdown in Asia. The sell-off which have continued thus far into the Asian session looks like it could have some impact on other markets, that much remains to be seen though. What has been clear though is that Market may be feeling a little overextended as of late, as there was a large amount of profit taking in major currency pairs and for equities globally today. The recent rises have seemed very bullish and at some point most traders will have to take profit, and today there was plenty of that.

The big one for me was of course the S&P 500, which has been bullish for some time now. We finally saw a touch of 2800 and even got as high as 2807 before the market fell back and we saw some aggressive profit taking. The S&P 500 also moved below support at 2775 before finally clawing back higher and closing above. Further support levels for the S&P can be found at 2750 and 2725 with the 20 day moving average likely to also enter the fray and act as dynamic support as well if touched. In the event we see a retest of 2800 we would need some stability, as crypto pressure may cause some nerves to fray in the equity markets. Beyond 2800, 2825 and 2850 are likely to be the next psychological levels for the market to target.

The other big player in today’s market when it came to volatility was of course silver which underwent some big swings during the course of the day. Metals for the most part have recently risen higher on a weaker USD, but also on the back of increasing growth for commodities as well. Silver for all its uses has always been gold’s little brother for traders, but at the same time it’s clear to see that it has more volatility for traders on offer. Today was no exception with some sharp selling after the recent high, and the market fighting back to find some ground again in the evening.

From a technical perspective the touch of the 20 day moving average in the Bollinger bands was a telling sign that the bears ran out of strength and were happy to give back up ground to the bulls. As a result and with the recent global jitters we could see the bulls continue to make some ground with resistance at 17.394 and 17.753 likely to be key targets. If we see further falls then 17.101 and 16.820 are likely to be the key levels of support in the market.