This is a risk adverse market (see right hand column): the S&P is setting up to break its premarket lows at S2 on a rising VIX, Down Volume and a Cumulative Tick that is falling apart. Well, the market had set itself up for any earnings disappointment whatsoever as overbought as it was, and so the bears have their day. And there goes S2... Depending how damaged this cycle becomes, I'll be looking for initial support about a dollar lower on the SPY (say $112.50-113.00), then down towards the high $110 level -- but that would require more than a one-day wonder.
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