SOX, SPX need to bounce right here, or they both have another big leg down. They are both at critical support levels.
SPX took out the August low today, closing below 1100. SOX closed just above the August low, and only modestly above the 2010 low. VIX came close to taking out the August high (48), and has failed repeated attempts to get below 30. AMAT took out the 2010 low, falling below $10. MU down 14%.
I did nothing today, just sat and watched. Tomorrow, if today's lows hold (and if the VIX doesn't get above 48), I'll cover all my shorts. If today's lows don't hold, then I'll continue doing nothing.
Some sectors and stocks (like AMAT) are starting to get into the range they were in, during the market bottoming of November 2008 to April 2009. Some (like AAPL) are still close to their bull market highs. This presents both long and short opportunities, for paired trades.
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