Market Notes: Where's the next stop?
All of the major averages breezed through current support levels today. The VIX hopped the bull/bear fence at 15, gaining over 30%--a ginormous move for this index. You can read the financial news for the "expert" opinions on why today's sell-off was so dramatic (as if there always has to be a "why" other than the fact that the market was overbought and buying pressure dried up). I'm just here right now to give you the next stop on the market elevator's move to the ground floor. And yes, I do believe we have a couple of more days (at least) before we drop to a level that can be honestly be called oversold. When you see the VIX spike over 20, that would be a good time to consider exiting any short positions, if recent history is any guide.
Next support levels (current levels in parentheses):
SPX (1790): 1775 (close to its 100dma); 1750
DTX (726--sitting on its 50dma): 720; 710; 700--its 100dma
DJIA (15880--busted through its 50dma this morning): 15700 which is below its 100dma
Nasdaq (4128): 4100 (50dma); 4000 (roughly its 100dma)
RUT (1144): 1140 (50dma); 1120; 1100 (below its 100dma)