The SPX is clearly on its way to test the 2002 lows as financials got sold out again. We might enter the final capitulation now for this downleg as the bulls, who were trading the double bottom idea with the October 10th lows, have to throw in the towel and retreat from the bull camp. The Rydex is actually on unbelievably high levels (which is an implication that a sharp sell off is due).
The VIX is above 70 again, which is good, as the fear factor is rising we should get a trough within 4 trading days though and a sharp snap back rally should occur as we are far below monthly Bollingers.
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