SPX Hits Downside 775 Target

What's next? Now that the S&P 500 is at some long term support we'll have to watch and see if it can hold. A bounce would make sense here, but with all the other support levels being ignored on the way down we need to see some evidence of a bottom AND the follow through before we can comfortably say that the downward move has stalled. Notice that I said "stalled." We are in a bearish market and at these levels we are likely to be way under the downtrending 200MA on the daily charts which is illustrating our trend. There will certainly be short term rallies to resistance, but in all likely hood these levels we're at today will again be retested in the coming weeks and months.

SPX Monthly Chart: 775 target reached today



SPX Monthly Chart: Showing Next Support Area of 675

RUT Downside Target Below

My new downside target for the RUT is 350. Should be easy considering we were at 490 on Monday. The momentum is still strong to the downside.

RUT Monthly Chart:

SPX Target in Sight

I had to pull out to a 10 Year Monthly Chart to illustrate the support area at 775 for the S&P 500. This is the first target. Momentum and trend is still to the downside.

SPX Monthly Chart:

Internet Sector Index Head & Shoulders Complete

The Head and Shoulders pattern we've been tracking on the Internet Sector Index was completed today as seen on the chart below.

Internet Sector Index Weekly Chart:

DOW Target

The DOW Monthly Charts are indicating a close downside target of 7500. There is horizontal price support in that area from 1997, 1998, 2002 and 2003.

DOW Monthly Chart:

NDX Monthly Chart

The Nasdaq 100 continues to get smacked and is now resting on the backside of an old monthly downtrend line. The next major support on the Monthly Chart is the 2002 bottom at the 800 level. Looking at the monthly chart, the current red bar is still solid, indicating that the move still has momentum to move lower.

NDX Monthly Chart:

VIX Levels

The Volatility Index for the S&P500 closed at 69.15 today which is still holding the 8MA on the Weekly Chart. This confirms that there are still very high levels of uncertainty in the markets.

VIX Volatility Index 5 Year Weekly Chart: