Twice in August two of four USA main indexes have approached, but not quite tagged, key target areas. On 8/15 INDU came within 59 points of YR1; on 8/23 SPX came within 5 points of Q3R1 which was the lower end of a target zone. However, on 8/23 RTY / IWM tagged Q3R2, and we saw some selling today.

ISEE has been quite low the last 2 days, which means a lot of puts. This is not a lock, as there was one day early off the February stock index lows that was very - and correctly - high on ISEE (a lot of calls bought). Regardless, SPY and VIX did something interesting today. SPY held YR1 as support, and VIX fell very late in the day back near its AugP while appearing above for much of the afternoon. While closing fractionally above the level, it doesn't have the look of support just yet.

You could make a case for a hedging position or partial take depending on what you are in, but if VIX opens lower tomorrow below the AugP watch for an index bounce.

SPY, VIX and IWM below.