SP 500 And NDX Futures Daily Charts – Rinse Cycle May Be Almost Done

Stocks continued to decline on mediocre economic news and international jitters. VIX rose a bit as shown on the chart below.

Even with the declines, led by the momentum stocks which are the agitator in the wash cycle, we are falling back to the lower bound of the upward trend channel.

I think that if this is going to be a major correction, which it is not yet but is still possible, we will have to see some serious support levels below here break down. 

I would look at the techs to lead and SP to confirm downwards if this correction turns into something more significant.   And alternatively,  the SP to lead a rally back up with the techs confirming if that should happen instead.

Although it may look good, this market is like a piece of fruit going bad from within:  soft, unpalatable, and infested with vermin.

But for now this looks like a thorough rinse after a first quarter washing.

Have a pleasant evening.