Regardless of next short term move, the market is increasingly looking more volatile for this year.
This is a huge gap down and out of proportion. We could see an extremely strong reaction tomorrow to the upside and less likely another big gap down which would probably be a huge move. If that happens, I will be pretty disappointed holding only a 1/4 position but unless we definitely clear under support with a weak close, this big gap down could act like a vacuum if the market bounces into it.
Very oversold and well under the lower BB so am being cautious about the short. I would have preferred less of a gap down and more intraday movement.
There is a still a long way to go on the stoch/ CCI which means this move is probably not over. That said, the oversized gap down with the intraday weakness in $VIX/ $VXO could foretell a reaction tomorrow
VIX's move seems a bit extreme