You want to hear something funny? VIX and SPY are about to invert. VIX and oil already inverted last month. Wacked.
This market is trading almost entirely on Reflexivity. Stunning. We blew through what I consider the last bastion of technical support, the '02 lows, and to speak of levels any further from here is making things up, imo. I too can pick a number out of a hat for a lower target and it may be right. Volume on selloff was not stratospheric, but it was definitely heavy. VIX goes out at 80.86. Perhaps this is the last train of rational analysis. A double top in VIX or a lower high may signal at least a tradeable bottom, and perhaps THE bottom. Fear intense. Just look at Treasury yields. There is buckets of blood on the street. Metaphorically it reminds me of the scene from "Saving Private Ryan" when at the end of the first battle we pan back to the beach, and the sea is blood red with fish washing up dead on shore.
Selling calls and buying underlying obvious strategy. That is a synthetic put only if the ratio is right, so probably only selling say 50% calls. Blowing out 80 VIX is obvious.
Watch the two upside TL breaks in SPX. Very close on first. Target 782. Next one would send up to 842.
Market likes the Treasury Sec choice. 782 would be a done deal, but currencies are dead and UUP doesn't care.