I’m still very much positioned for further market weakness, and I’m hoping to hang on tight until the VIX gets back up to about 23 or so. Below are a few targets that I think would be reasonable in the face of a sell-off. First, the Dow: I’m looking for support just above 17,000:
On the NQ, we’ve got a failed bullish breakout, and very firm support is way down at 4080:
The S&P 500, shown here by way of the ES, has support around about 1990:
On the long side, bonds are looking strong. We’ve got an island reversal pattern in place:
One reasonably decent “down” day on Thursday would be all it takes to set things in motion. There are a lot of stocks and indexes that will begin failing badly with just a little more weakness.