SPY dropped from its SepP today, but VIX at the close was interesting.

Nuance of the method: the "looks of support" or "look of resistance" are more reliable than just clearing a level with those. Case in point: IWM and XLF were above SepPs yesterday only to tank today, but not with the "look of support." We saw something similar with the AugP on TLT; it was above the level twice, but not lifting from the level with it appearing as support, which is a difference. Let's include another example: today's low in IWM SepS1 has the "look of support" (check the small green dots in IWM chart below).

SPY does look like a sort of low test on its 100MA and maybe near enough to SepS2. VIX has tested both its 2HP and Q3P. Given the level of the VIX I'd bet on rebound tomorrow. If that rebound is weak, watch out. Also, XIV broke its YP so VIX vehicles are not exactly giving green light here.

SPY, VIX, IWM and XIV below.