Wall Street suffered its worst day of the year on Thursday after the Federal Reserve said it may phase out stimulus and China's cash crunch worsened.

 The S&P 500 sank 2.5% - its biggest percentage drop since November 2011. The Nasdaq sank more than 2.3% and the Dow Jones tumbled 2.3% - the biggest one-day point drop since November 2011.

The S&P peaked in May but has since been unable to break above 1650 and now the short term trend has turned bearish. The charts tell us we could see it fall below 1500.

But as long as it doesn't break below 1340 Saxo Bank's technical analyst, Kim Larsson says the long term trend is still bullish.