All Cash and Futures Indexes (except ES Z2) have already fallen below the Cliff which is the April 2 Double Top Support - and possibly into the ABYSS:
Usual price action is to collapse when it breaks below the Double Top Support. It made worse with the collapse below the 50ma support by Dow Jones and SnP500 on the same day.
All is not lost however. There is still the possibility they are forming either a Triangle of a Complex Flat and another rally could happen.
Trailing stops for more than half of my SSO Day-Trades (bought at June and July lows) have already triggered protecting a major portion of paper profits. Most of YM and/or NQ Intrepid Trades still make some profits over-all despite two failed trades and only one successful.
I bought a New Day-Trade yesterday with below SnP500 1393 level as the stop loss (see Oct 24 Comments for Intraday EW maximum allowed run rate for SnP500). If a meltdown happens early next week that breaks hard below 1393 then it could result in a Spiral Meltdown. So caution is necessary buying a potential v-th wave of a C-wave, always is. Also bought YM and NQ yesterday near their lows when AAPL 'bad' report caused them to spiral down on intraday charts. Also bought AAPL today with it's Daily 200ma as the Stop Loss Major Support.
We do not know if the large Institutions are already selling their long-term equity holdings. They can hire the professionals (such as GS, MS, JPM) to sell their holdings without unduly causing a massive stock market meltdown (read: Reminiscences of a Stock Operator how it was done in the early 1900's. Surely, they have much more sophisticated ways of doing this Operation by now). But then, we actually know nothing being on the outside. Thus, Extreme Caution is necessary as the Bush Tax Cuts for the wealthy is more likely will not or cannot be extended by either Obama or Romney.
Will try to go short ES if it goes A-B-C corrective rally next week - to protect my Portfolio.
** For those who are not proficient with Intraday Trade Entries: The SOP buy method is using Stop Buy Market(s) above Today's High using stocks, futures, or ETFs.