By Senad Karaahmetovic

BTIG’s Jonathan Krinsky believes that the is now closer to 3,400-3,500 than 4,200 after yesterday’s price action.

The S&P 500 fell 4.04%, lost 4.73% while the closed 3.57% lower in another bloodbath. Target’s shock (NYSE: ) sent shares 25 percent lower.

“There’s not much else to say about today’s action other than it was a bloodbath,” Krinsky told clients after market close.

He stated that investors have been rotating among sectors to take cash from the market instead of rotating their capital.

“We had thought a counter-trend rally to 4,200 would make sense, but given today’s action, our conviction that the SPX tests 3,400-3,500 before this is over is now higher than our conviction for a rally to 4,200. While it won’t be a straight line, today is confirmation that selling rallies in bear markets is much easier than buying dips,” he added.