The futures are down big time. With the markets showing weakness already, is this the infliction point we have been waiting for all these days? I somehow think this is not yet the time even when the market goes down on coming Monday. The following is SPX weekly chart.
Cast your eyes upon these charts showing triple EMA crossovers (5, 10, and 20) of the VIX when below 18 and try not to get joyfully misty-eyed. Looking back to 2003, it has been fairly consistent, but should be confirmed by a support break on the index.
5% down is 1349
10% down is 1278
Interestingly enough, a few places in that range show a good possibility of putting in a floor. Looking back, I see a lot of corrections cap out around 7-8%. I think we've got very decent chances of seeing 1340 SPX. If that fails, then 1300.
IF we can break 1370, that is…