Pullback Surpasses 2009 Mean
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.
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[Edit: data updated as of 3:10 ET]
