As a sea of red emerges across the European markets, S&P 500 futures also remains under heavy selling pressure, as the appetite for risk asset vanishes amid fresh coronavirus restrictions and US fiscal stimulus impasse.

The greenback remains bid amid a flight to safety while the futures tied to the US stocks tumble over 1% to reach a five-day low of 3,434.

The sell-off in the US futures is likely to extend, as bears eye a break below the 3,400 level amid a rising channel breakdown confirmed on the four-hour chart (4H) on Wednesday.

The Relative Strength Index (RSI) points south, at 37.16, still holds above the oversold territory, suggesting that there is more room to the downside.

Therefore, a drop towards the 200-4H simple moving average (SMA) at 3,389 cannot be ruled should the 50-4H SMA at 3,442 support give way on a sustained move lower.

On the flip side, any pullback attempts could meet fresh supply at the horizontal 21-4H SMA at 3,498.

All in all, the path of least resistance appears south.

S&P 500 Futures: 4-hour chart

(Click on image to enlarge)