Schaeffers Opening Statement

U.S. stock futures indicate a massive sell-off on the open


Monday's late-session sell-off on the Dow Jones Industrial Average (DJIA) appears to have been merely a prelude to today's plunge. The DJIA traded between 10,200 and 10,100 for much of Monday, only to plummet to within 70 points of the 10,000 level by the close. Heading into the open this morning, DJIA futures are trading some 225 points below fair value, indicating that the blue-chip barometer could open at or below its February low of 9,835. Meanwhile, futures on the S&P 500 Index (SPX) are trading more than 30 points below fair value, potentially placing the SPX below its February low of 1,044. If these levels fail to hold, the next area of support for the DJIA lies near 9,700, while the SPX could find buyers near 1,030 - home to the market's October 2009 lows. Finally, VIX watchers will want to keep a close eye on the 50 level, as the CBOE Market Volatility Index (VIX) could make a beeline for this round-number level