US equities markets are getting ugly with the major indices breaking down and volatility ramping up

US equities markets are getting ugly with the major indices breaking down and volatility ramping up. The S&P 500 finished down 3% for the week and hit its lowest level since early August. The benchmark index went from up nearly 10% for the year in mid September to up just 4.5% at the current level. All eyes will be on the key 200-day moving average, which the index is rapidly approaching. In the meantime, the VIX climbed to 21 - a level not seen since February. With the long-term average of the VIX around 20, the current level actually shows real investor concern for the first time in ages. Basically, investors are spooked by a combination of various macro-level risks. The list includes European depression-like conditions, the end of the Fed's QE this month, the conflict with ISIS, the spread of Ebola, and economic slowdown in China, to name a few. With earnings season underway, it will be interesting to see how the markets respond to the results.