This really does not happen often, but all leading stock markets are lined up at huge support. We will let the charts speak, so comments are limited.
The Nikkei 225 in Japan is testing support at its trendline that marks the 2013 uptrend. The trend is still up, so there is a likelihood that it will hold.
The S&P 500 is testing the 1825 to 1860 area which marks a quadruple test (bottom?), and it coincides with a consolidation area (see early 2014). This area will hold if a consolidation scenario is unfolding, otherwise stock markets could are up for more pain. We still see a bullish scenario unfolding, although this scenario is tested its boundaries at this point.
The Shanghai Exchange in China is testing its August 2015 lows and December 2014 highs. The trend is clearly down here, so chances are high that support will give away here.
In Europe, the index with the largest 50 companies (Euro Stoxx 50) has broken through first support (dotted line) and is now testing major support, going back +2 years. It is hard to find a clue on whether this will hold or not.
The German DAX index just broke down below its support line, as seen on the next chart. We have seen a false breakout in December, so there is always this possibility of a false breakdown today. So far, however, it is a breakdown until proven otherwise.
Clearly, the driver of this has been panic in the crude oil market, spilling over to stock markets. We are pulling up a number of charts in a separate post on crude oil, and how much it could further fall, as an indicator for stock markets. Read How Panic In Crude Oil Is Driving The Sell Off In Stocks, Where Will It Stop?
