Vulnerable Market

"I feel it."
--Jack Goddel (The China Syndrome)

Domestic markets took off their brave face from yesterday and sank about 1.6%. SPX close was noteworthy in that it marked the first time the index has closed below its 200 day moving average since last fall.

Not a lot of support between here and the November lows. SPX 2000 amounts to about a 50% fibo retracement and would be an intuitive battleground. Next support level below that is 120 handles down.

For perspective, retracing the entire fibo range above would amount to a 17% decline. Chinese stock markets have fallen more than twice that in the last few weeks.

Market feels increasingly vulnerable. Fire might only need spark here.

position in SPX