Bulls will be eyeing these two potential support zones as the S&P 500 tumbles

• The S&P 500 trades 0.47% lower on Thursday after a bout of risk-off trade.
• There are some key support zones coming up and the bulls will be watching them closely.

Fundamental backdrop

Some of the blue-chip stocks in the US are taking a beating on Thursday as it was announced that a US House Antitrust Panel is said to be eye Google, Facebook, Apple & Amazon. Adding to this Microsoft's latest earnings update didn't really inspire a move into the companies shares either. To top this all off, the US and China are still at each other's throats as tensions between the two economic superpowers hits new highs. Three of the top four biggest companies are the worst-performing in the index this afternoon compounding the woes for the bulls. 

S&P 500 4-hour chart

Looking at the chart below there are two key levels the bulls need to watch out for. The previous wave high is at 3233.25 and the price may print below this zone but there wuld need to be a close below the zone for confirmation. The next major level stands at 3157.57 and this level looks very firm having been used four times on this chart alone. The indicators are throwing up some new bearish signals too as the Relative Strength Index is on its way to dip below 50 and the MACD histogram has just printed red. On the plus side, the signal lines are still way above the zero level on the MACD. 

Additional levels