Today is a red-letter day in the world of politics, featuring a collection of key Democratic primaries. However, “Super Tuesday” has been a rough one on Wall Street. Midway through the American session, the DJIA DOW (-375), S&P 500 SPX (-35), and NASDAQ (-95) are all in the red. At this point, it appears that the emergency ½ point FED rate cut has done little to boost sentiment.

As a general rule, “emergency” FED rate cuts don’t bode well for the markets. Similar actions were taken in 2008 to combat the fallout of the financial crisis. Unfortunately, it took some time for the benefits to be felt. For now, it appears that history is repeating itself with investors going risk-off for the time being.

In many ways, it’s difficult to overstate the significance of the FED’s decision to drop rates to 1.25% from 1.75%. Actions of this nature are rare and give us an indication of how severe the situation really is. Be on the lookout for some surprise news headlines surrounding the spread of the coronavirus and pending Wall Street fallout.

Wall Street Backpedals On Super Tuesday

For the March E-mini DOW, prices are at a make-or-break technical level. As long as the 38% retracement (26,535) holds as topside resistance, it’s short-or-nothing in this market.

Here are two levels worth watching as we roll through Super Tuesday:

• Resistance(1): 38% Retracement, 26,535
• Support(1): Spike Low, 24,675

Overview: As you can see from the chart above, prices have rallied and put in a test of topside resistance at 26,535. Since then, bears have dominated the action and are sending rates lower. From a technical perspective, this is a strong sign that the selling of last week was valid. Unless we see 26,535 taken out, the daily trend is bearish for the March E-mini DOW and intact.