While this might not provide a great deal of comfort to longs, I have updated the VIX and More Pullback Table to reflect today’s selloff. The table shows that the peak to trough drop of 67.98 points (6.2%) in the SPX has exceeded the 2009 average of 5.8%.
As noted previously, a 5.8% pullback from the SPX 1101 established a target low of 1037. Today the SPX has been as low as 1033.38.
Looking at the charts, I would expect to see additional support in the 1015-1020 level should the 1034 mark fail to hold. In the meantime, brave souls who heed the VIX spike history or the strangle pong strategy should have a long bias going forward.
For related posts, readers are encouraged to check out:[Edit: data updated as of 3:10 ET]