The markets plunged today, but traders resumed buying at the close and slowed some of the bleeding. SPX broke through its 50 dma and closed at $2080, down $9. RUT actually booked a gain of $4, closing at $1219. This was accomplished by strong buying in the last hour or so of trading this afternoon. Trading volume was higher with 2.3 billion shares of the S&P 500 stocks trading.  Trading was up 3% on the NYSE and was up 6% on NASDAQ. Volatility spiked up over 16% on the VIX, but settled down to 15.1% at the close.

RUT hit $1220 as its high in December, and the trading yesterday and today seem to reinforce that as a significant support level. While that looks encouraging, the fact that SPX easily sliced through its 50 dma is disconcerting. We may have more weakness ahead. The next support level to watch on SPX is $2065. Look at the chart in January; after correcting 4%, two rallies failed at $2065 before breaking out higher.

ADP's private employment data came in at +169k for April, down from March's +175k. FOMC chair Janet Yellen referred to the stock market's valuations as "quite high" at a financial conference today; those remarks coupled with the disappointing ADP data probably caused traders to take some gains off the table. Tomorrow's trading may be hesitant and choppy in advance of the jobs report on Friday, especially after the ADP report today. I always take a look at the S&P futures when I get up in the morning to get a sense of the day ahead. But several times lately, I have been surprised by positive futures numbers in advance of the opening, only to have a dismal day in the markets. One newsletter I read used a great phrase to describe this market, "Rotation Bewilderment".