Is the market going to correct any further? Or is this the worst of it? While most expect the S&P to hit support at 980, many feel that the market will break support and tumble towards the 940 range.

It seems that the VIX index is predicting another leg downward as well. It broke resistance at the 50-day in dramatic fashion, closing at its highest level since mid-July, just prior to the second bull market surge. The “fear” index is calculated based on the implied volatility of S&P 500 index options, where a high value corresponds to a more volatile market and therefore more costly options. Following the breakout, it now seems like fear, and a corresponding downward swing in stocks (or vise versa), will continue further.