Panic is at large across financial markets not over rate hike from US Federal Reserve but hard landing of Chinese economy.

Market participants are doubtful that Chinese Authorities will be able to prevent stock market crash, further devaluation of Yuan, ailing exports and economic health and encourage deleveraging in China's corporate sectors.

Today's preliminary reading of manufacturing PMI further strengthens the view, which dropped to 47.1 for August, lowest level in more than six years.

Investors preferred to withdraw money and park it as cash and into safe haven assets, such as treasuries, Yen, Franc and Gold to some extent.

S&P500, which is one of the most stubborn index to risk aversion cleared a crucial resistance at 2040 area, which bulls were successful in defending since February this year.

Where S&P500 might be heading to?