Watching the VIX

Any rally will be short-lived until the volatility index closes below its 10-day exponential moving average

By Paul Cherney

I think there is limited downside. I am not going to expect upside which can last for more than just one or two trade days until I see the VIX (the Chicago Board of Options Exchange's market volatility index) close below its 10-day exponential moving average, which finished Friday near 35.00. (The VIX finished Friday at 38.33.)

The S&P 500 has immediate resistance 927-934, then 958-977.

The NASDAQ has immediate resistance 1393-1415, then 1430-1486.

The S&P 500 has a immediate support 914-893 with a focus 906-896. There is a braod layer of support 986-893. Support actually runs all the way down to 855.

The NASDAQ has immediate support 1360-1323.

Cherney is chief market analyst for Standard & Poor's

Before it's here, it's on the Bloomberg Terminal.