SPY shows a nice weekly gap in the low 400s. I wonder if we work down to that on a wick and then try for new highs again around EOY. VIX is not looking very interesting mid term.

The reason for the this downturn is what's newsworthy. We're potentially witnessing another Lehman Brothers moment.

Then link and/or discuss the newsworthy event, not the market movement.

If you think the Chinese loan company is going to be a problem, feel free to discuss that as the core topic. But looking at the US stock market when the Chinese Bond market is erupting is a bit of a non-sequitur, don't you think?

Given the low value of VIX, the US investors seem rather calm about the event right now. It is news if VIX spikes, as options are bought when investors are scared. But 2% movements and under 30 VIX is rather ordinary, as far as US stock markets go.

the more likely reason is a large fund rolling their puts which causes forced liquidations for highly leveraged market participants. it's been doing this for years and is one of the reasons for consistent turmoil in the market every september (and march - it is a bi-annual event)