SPY, IWM, VIX (08 Oct 2008)

If you look at SPY and IWM, usually should have bounced now. But lets play safe and take a look at both scenarios.

Short selling restrictions will be lifted today, so I expect further downside.

SPY could hit 95 and continue to 80 , always be on alert for any strong bounce. I think chances for a bounce on Friday is higher because it is the end of the week.




IWM same concept, most likely will go down to 50 before meeting a possible resistance level at 50, but if it breaks expect IWM to go down to 30.
Personally I don't like to short IWM or SPY, I prefer to play the VIX. If the panic selling continues today, I plan go long on VIX. Before I forget, don't try to short the VIX...that is stupidity...we have not even arrived at capitulation yet.