The bottoming tail looked pretty convincing yesterday on the NDX. The index had been down 7 sessions in a row and the resilient NDX looked like it was ready to rally back to retest some resistance areas. Up until an hour and a half before today's close, it looked like the rally was forming, but fear in the market won out and the selling turned into some panic selling at the end of the day with the VIX spiking to recent highs.
Technically, it should not be a surprise as the uptrend was clearly broken on Friday. A broken trend should warn us all that there has been a significant change in price action and we must be alert.
If the fear continues to prompt panic selling, the NDX may fall all the way down to 1850 or 1800 as it did last August before finding a bottom.
NDX Daily Chart: (showing broken trend) 
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