Rich Ross Is Bearish On The S&P 500

On CNBC's Fast Money, Rich Ross of Evercore ISI spoke about the impact of China on the S&P 500. He analyzed the correlation between yuan and the S&P 500 and he concluded that the index followed the decline in the yuan. Crude oil and the Dow Jones Transportation Average have also shown strong correlation with the yuan.

Ross explained that the S&P 500 is currently trading at its support and if it breaks the support, it is going to 1,900. If the S&P 500 bounces off the support, Ross would sell the rally. He sees 1,900 as the next price level for the S&P 500 because that is the value of the 150-day moving average on the weekly chart. A drop below 1,900 would bring a lot of pain to the market, said Ross. He added that at a minimum the market is going to test 1,900.