The stock market took a beating on Monday as Wall Street fretted over the potential ripple effects and the default of a major Chinese real estate company, as well as ongoing debates concerning the U.S. debt limit. All the the major S&P sectors declined with Energy and Financials sinking 3.1% and 2.3%, respectively.

The Russell 2000 settled at 2,182 (-2.4%) with the midday low reaching 2,155. Prior and upper support from mid-August at 2,175-2,150 was tripped but held on the close back below the 200-day moving average. A drop below the latter would suggest ongoing weakness towards 2,125-2,100. 

The Nasdaq traded to an intraday low of 14,530 before closing at 14,713 (-2.2%). Upper support at 14,750-14,600 was breached and failed to hold on the close back below the 50-day moving average. A fall below the latter would indicate a further pullback towards 14,500-14,350.

The Dow ended at 33,970 (-1.8%) after kissing a low of 33,613. Prior and upper support from mid-July at 33,750-33,500 was breached but held. A close below the latter will likely lead to a further fade towards 33,250-33,000 and the 200-day moving average.

The S&P 500 tested a low of 4,305 before finishing at 4,357 (-1.7%). Mid-July and upper support at 4,325-4,300 was violated but held on the close back below the 50-day moving average. A move below the latter be an ongoing bearish development with additional weakness towards 4,275-4,250.