The Wednesday session turned out to be tragic on Wall Street. All important indexes lost over 3% of the value:

SP500 -3.29%, closing at 2,785 points

Dow Jones Industrial Average -3.15%, closing at 25 598 points

Nasdaq -4.08%, closing at 7,422 points

For the first two indices, it was the largest one-day drop since February 8, and Nasdaq has been worse off lately after announcing the results of the vote in the Brexit case. Although yesterday's session was not so devastating again, it casts a shadow on the stock market rally driven by great economic data and a reduction in taxes for enterprises. In last week, new highs on indices have been set, and here there has been such drastic depreciation. Wall Street may suffer because of the increasing cost of employment and more expensive loans related to tightening the policy by the FED - yesterday's reaction of investors is just a kind of realization that the policy of low-interest rates has already ended.

Let's now take a look at the SPX technical picture at the H4 time frame. The index has hit the 61% Fibo retracement at the level of 278.11 but has closed below it anyway. The nearest technical resistance zone is seen between the levels of 279.48 - 280.62. On the other hand, the next technical support is seen at the level of 276.48 and in a case of the sell-off extension lower - at the level of 273.94. The sell-off might last longer as the momentum oscillator is deep below its fifty level and it is pointing down.