Here is a 30 minute bar chart of day session e-mini trading. I thought today would be a bullish day but as you can see sellers took control of the market from the open. I am still long one unit and intend to stick with it unless the market starts spending time below 1015.
The 1015-1016 zone should prove to be strong support. The upside breakout level was 1016 and 1015 is the midpoint between the September 2008 high at 1291 and the November 2008 low at 739.
If this support should fail then I would expect a break about equal to the August 7- August 17 drop which was 40 points (purple rectangle). I still think this is the less likely outcome and expect the drop below 1020 to prove to be a terminal shakeout rather than the start of a significant drop. In this regard I think it is significant that the volume this morning has not been unusually high when measured against similar early morning drops recently (green ovals). I would also point out that so far today's day session range has been exactly as big as yesterday's, making it likely that the 1014.75 level is today's low or very close to it.
If I am reading this market correctly it is forming a low point that will define the lower boundary of a trend channel (green dotted lines). The next up swing should carry the e-minis to the upper channel boundary which is close to or even above midpoint resistance at 1054 which is defined by the May 2008 high at 1442 and the March 2009 low at 666.