The S&P 500 has shrugged off around 2.5% of gains in the last couple of days, however, consolidation may now be in place.

The S&P 500 has shrugged off around 2.5% of gains in the last couple of days, however, consolidation may now be in place. At present, the index is trading at around 3,902. Towards the downside, minor support sits at 3,901 then at 3,890 (corresponds with the ascending trendline) then at 3,885. A break below 3,885 could see the index extend losses much further towards 3,870 and then 3,800. On the other hand, towards the upside resistance sits at 3,909 then at 3,916 then at 3,923 (horizontal trendline). A break above 3,923 may result in a reversal trend and give the control back to the bulls. Looking at the technical indicators on the 4 hourly timeframe, MACD is negative but swaying towards neutral and RSI is negative as it reads 36.