The bears extended the sell-off that rang in the New Year by pushing the major averages well below recent support. Judging by the strength of today's sell-off, it's possible that we could see a retest of the next major support levels very soon. For the S&P 500 (SPX) that would be at 2000, only 20 points (1%) below today's close.

The Dow Industrials (DJIA) violated not just one but two minor support levels today and is currently resting on 17500. It appears likely that it will slip below that to retest its December low at 17060.

The Nasdaq broke 4700 and is well on its way to test major support at 4600. While the VIX did (somehow!) manage to close under 20, I don't think it's going to remain there for long. In spite of all these negative indications, the one minor ray of light is that the Trin is at contrarian levels meaning that we could see a relief rally tomorrow, but I'm not expecting it to last long.

Despite the fact that nearly every sector was trading in the red, there were a few bright spots--the US dollar (UUP), REITs, long-term treasuries (TLO, TLT), municipal bonds, and investment grade corporate bonds. This rotation strongly reflects a flight to quality and safety. Two market bell-whethers, the financials and technology (represented by the XLF and XLK exchange-traded funds), both broke support levels adding further downward pressure on the market. Oil (as represented by the exchange-traded vehicles OIL, DBO, and USO) continues to tank and the burning question right now is where will it find a bottom?

The only other areas that are finding some upside are precious metals and their miners (GLD, GDX). Many of today's biggest percent gainers were found among the junior gold miners (GDXJ). Today's rally caused one junior miner, Gold Fields (GFI), to jump over 7% to hit a new yearly high. The triple-levered long gold miner etf (NUGT) gained over 8% to close just above $13. From its chart, it appears as if it's making another run towards the $15 level which it tested a few weeks ago.