Surely That Isn't All. Right?

is there more to this bounce?

As recently as yesterday afternoon, my persistent hand-wringing about the bounce was in Full Wring mode, and I figured we might be only 40% done with the bounce. I laid out in a premium post over the weekend that we might be in for more teeth-clinching for the VIX to work its way from almost 30 (last week) to maybe half that value.

Let's just put on our fantasy caps for a minute and suppose that 1400-point rise on the Dow from Thursday's low to yesterday's high was sufficient to relieve the oversold nature of the market and that, unbeknownst to us, the nature of the market has changed so severely that the selling has already resumed. With those rosy glasses on our heads, let's talk about how each of these indexes might continue to get walloped.

We begin with the NASDAQ Composite. This has broken through two Fib levels already, and it managed to almost rally back to the lower of those on Monday. A failure of the third (just below last week's low) would accelerate the selling.