Continued negativity for the markets

We are now below support at 2100 on the SPX. After hours, the futures are down even more substantially, trading 0.35% down from the close right now.

Today, I moved the SPX 2100/2090 put spread out until Friday, and got an extra credit of $2.30.

Looks like we will have to keep rolling things out, and putting on call spreads until this market rallies back. This could take a few more days, but the markets are already oversold on a number of measures.

First the short term volatility is very far above the longer term measures, which usually does not last long.

Second, the number of stocks below their 20 day moving averages is already at extreme levels. Usually, the rebound from these levels is sharp and quick.

However, until we see signs of a full rampant sell off and reversal, downside is possible. With 7 days of negativity already behind the market, a rebound could be very soon.