The S&P 500 and the DOW both broke their support areas today. No, I will not be lowering my support lines. This does look like there could be more selling to come. I would look for major confirmation on any bullish trades. For bearish opportunities, I would look to buy put options on the DIA or SPY...especially if we rally a bit back up to that previous support area. There are a lot of stocks that have broken below their 50 day moving average. The smart trade here might be to sit on some cash and hope these stocks pull back. It's hard to tell right now if the pull back will be small or if we will retest the March lows. In the near term, I would look at 880 as the next support for the S&P 500.
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