Well, I had told you readers that I would be back on Thursday but surely you don't expect me to leave you readers by yourself on a day like today, do you?? I hope all of you our there did not get hurt much out there today. Let's get straight to business and see where the next support levels are.

As always, the S&P first.

It broke down through some important levels today and closed right above MA(50), something which the bulls could derive some comfort from. But wait a minute! Don't get too comfortable there. With the Cisco (CSCO) results being what they are in after hours, this level will be broken right at the open tomorrow. The next support comes from 1083, and I wouldn't be surprised to see the markets open right over here tomorrow and then continue to head south. Which brings us to the next major support level - the famous 1040 mark. Its still quite some distance away, so this downside, at least technically, could have a lot of room left.

Over to the NASDAQ. No "good news" here as far as MA(50) is concerned as the market broke through it easily. The next support levels - 2192 and 2133.

Its not looking good out there. The major support levels seem quite some distance away and I don't expect dip buyers to step in until close to these levels. Do yourself a favor and don't try and call the bottom unless you are a day trader. The momentum is clearly with the bears and let's see what they can do with it. If you are not comfortable going short, just sit and watch from the sidelines!

Take care and good luck!