The broad markets are selling off sharply today, and this is putting additional pressure on everything else. Major markets are trading well-below their lower Bollinger Bands, and this feels like panic selling. This type of prices action typically leads to (at least) a short-term low.
-VIX- The VIX is up 39%.
-SPY- Prices gapped lower and are down 1.7%.
-NDX- The Nasdaq is getting hammered down 2.77%. Prices are testing support at 7000.
-INDU- The DOW is down 1.77% and below the 200-day MA. Progressive closes below the 200 could signal a more profound correction developing.
I’m surprised gold isn’t catching more of a bid given today’s level of fear. The short-term cycle for stocks should be nearing a low. If prices begin to show signs of bottoming today or tomorrow, I may look for a quick swing trade.
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