I thought 16000 would be where the Dow bounced but we sliced through that like hot butter. It now looks like we're going to trade down to the 15700-15800 level before we'll find support. When viewing the VIX charts below, you'll see that we rose quite a bit and I would say one of two things are going to happen.

1. We'll gap lower in the general markets and put in a short term low, which at the same time would see the VIX gap up and exhaust itself.
2. The real selling begins and things get really ugly fast.

It's impossible to really know what is going to happen and all we have to go off of is how the markets have been behaving as of late. My timing signal on the Dow has turned lower and if the markets don't bounce soon it'll likely drag the NASDAQ & TSX with it.

Big spike in the VIX to levels not seen since last October.

Weekly chart putting this weeks move in perspective. The VIX by itself is not an incredibly useful tool and needs to be used in conjunction with other timing methods.VIX