The Dow Crashed: Did Anyone Even Notice?

There’s no doubt that the tech-heavy Nasdaq has held up fairly well in the face of what happened today. What? You didn’t hear? The Dow Jones Industrial index CRASHED! And the S&P 500 was right behind it. That’s right, the Dow broke through it’s 2002 lows. The S&P has also broken through those lows, and is teetering on a meltdown as well.

AAPL plotted a viscous bearish engulfing candle, as well as most of the leaders of tech. Of the leaders, only Amazon (AMZN) remains above its 20/50 day moving averages, but all the tech leaders have plotted bearish crosses on their respective MACDs. The Nasdaq is in very big trouble, with the leaders breaking down, it is on the precipice of a total collapse as well.

Once all the major indexes have completed the trifecta, there’s very little support from here. The bears can have their way with the bulls. The next level of support for the S&P is its fibonacci retracement of 666 off its highs. I wrote a post and produced a podcast, back on November 12, 2008, where I predicted that 666 would eventually become a reality for the S&P.

Click image to enlarge - This is the S&P vs the VIX (Fearless Index)

So why have I asked if any has noticed the crash? Well, if you look at the advance decline line, you’ll see that decliners are definitely well ahead of advancers, and that signifies broad-based destruction. But, if you were to examine the Put-Call ratio, or the VIX, they are indicating a relatively subdued and complacent mob. Back in November of 2008, when we hit the lows back then, the Put-Call ratio was rising well above 1.50, today it’s sitting at a relatively calm 0.95. And the VIX back in November was soaring above 75, today the fear index didn’t show any fear at all at an anemic 52 and change! That’s incredible!

There’s no fear out there. If anyone is expecting capitulation, well you can forget it. It would seem that investors are fine with taking this market down, and down big time! Now do you notice?

Disclosure: None