The SPX has dropped right to our support level that has 2 forms of trendline support (Blue arrow).

As we noted yesterday, there should be many support levels to cushion the market’s drop.  We noted a minor one in Red but the next major one is where the RED arrow is pointing to.

At this point, we’re mildly happy that we went “prudent” last week.  Something just isn’t right yet in the marketplace.  Maybe it is the bond market and international deterioration etc.  They’ll tell us sooner rather than later.

Some recent names that we thought had big-time vulnerability may be worth glancing at again should this selloff intensify.

Stay careful out there!

Cordially,

Wayne