This is not good!
The only reason the S&P 500 is holding the 200-day moving average at 2,776 is because the 200 dma keeps sinking. That, of course, is also pulling the 50 dma lower and once it comes down we're only a month or two away from a "Death Cross" and then we would be looking at a very long, very hard climb back for the senior index.
That's why it is very, VERY important that we finish the week back above the 2,800 line on the S&P and the 1,500 line on the Russell and the 12,500 line on the NYSE and the 25,500 line on the Dow and the 7,250 line on the Nasdaq 100. Anything less than that is DOOM!!!!
While we are pretty well-hedged for DOOM!!!! we did add to our hedges yesterday, in our Live Trading Webinar, and we'll be adding more hedges on Friday if the indexes don't perk up and get back to their levels which, though nowhere near a recovery, would at least indicate that there is SOME buying interest still out there – something we're beginning to doubt. By all indications, it does look a lot more like we're consolidating for a move down – rather than a move back up:
Of course, that's why we have our bounce lines – they let us know whether a recovery is real of if it's just a dead cat bounce on the way to the next lower band. The lines we've been using all month are: