Well, it looks like the bulls finally got "bitch slapped"... It's about time! Over 242 millions shares traded on the spy today... and that means a "Down Day". As I said in my weekend post, I was looking for 1090 to be hit before any more selling. It hit it, and dropped like a rock!
Wow! I didn't see that coming. I was wrong on my gut feeling that the market go down in the morning and up in the afternoon, but I guess you can't get everything right. Anyway, I'll keep this simple... big support at 1040. Expect a bounce there for a day or two, then more selling.
Next support is 1020, then 998-1000. I think that area will be hit sometime next month. Probably by option expiration. As for tomorrow, I say a pause day is in order... but you never know? Once the bears start slapping the bulls around... they might not stop for awhile.