SPX 1120

Domestic equities gapped about 3% lower after dismal overseas response to yesterday's FOMC announcement (plus continued deterioration in Europe).

They 'felt' lower in early morning trading as well. Early afternoon saw the SPX toying w/ the Aug closing low of 1120. This was the battleground for the remainder of the day.

I covered 20% of my short position during the probes of 1120. I intended to cover more if sell stops were tagged and sucked the index lower but that didn't happen.

I also bought a little SLV as silver was tagged for nearly 10%.

Stochastics suggest that the SPX is not all that oversold--unlike previous visits to 1120. Thus, there may be more downside 'energy' for piercing support. Classic technical analysis says the more times support is tested the weaker it gets. And today's back and forth around 1120 likely chewed through a few layers of latent demand.

Futes are up a few after hours, but would think that we see a probe lower in the near future.

position in SPX, SLV