Here is a 30 minute bar chart showing day session e-mini trading. News that the S.E.C. is suing Goldman Sachs for mortgage security fraud triggered a supply shock this morning (red arrows). Volume was higher than at any time during the past six weeks (red oval).
This sort of action typically kicks off a sustained move downward. In this case I estimate the downside potential to be 1163, the midpoint between the 2007 top at 1587 and the November 2008 low at 739. My best guess is that this move will take about a week to complete. The first rally is likely to begin from 1181 or so, the level at which the drop from 1210 would equal the biggest drop in the move up from the early February low (purple rectangle) - that drop took the market down 29 points and occurred in late February.
After this correction is complete I expect the ES to begin a move to the 1270 level.