On the SPX daily chart the 200 day SMA at 3045 has been soundly broken and the support level of 3028 has also been breached. The weekly chart the 50 day SMA of 3026 has also been violated to the downside. At about this point, in my opinion, "Mom and Pop" are going to start calling their financial advisors and instructing them to sell everything, causing further downside. They remember 2008 and aren't going to give back all their gains made since then.
The next level of support on the SPX daily chart is 2940.
VIX approaching the next resistance level of 36.23 and a break above that would bring into play the very psychological number of 50. It is at these levels that I will start to scale into the SPX. Readings of this level are EXTREMELY EXTREME and as I have stated previously, have happened 6 times in the last 10 years. All of those reading eventually led to a long term move to the upside for the markets.
It's "wrist slitting" time for investors, but not quite "jump out the window" time, yet!
UPDATE: VIX traded up past resistance of 36.23 to 36.36 and the next target resistance level is 50.30, which will force the "window jumpers" out.