After two large selloff days following the Brexit referendum, potential profit-taking by the shorts and a pause in margin selling has the potential to halt the current stock market selloff for a day or so beginning on Tuesday.
However, in order to do so the market needs to stay above Monday low. Any clear and sustained break below Monday low could trigger another round of liquidation selloff, next support is 4100.
The current selloff is just the beginning of the long overdue selloff that should last until the end of the year. Technical traders and investors would be looking for bounces to go short.
