Okay, It's 10:12 (And We're Green for Now)

Markets hit their limits at around 6 am and bounced off that third standard deviation band. There are natural concerns moving forward, but selling pressure isn't severe

Good morning again.

As I said in the article this morning, don’t panic sell.

The S&P 500 remains in Green territory, recapturing its 20-day and 50-day moving average. The volume is massive right now, around 2.5x the relative volume.

Selling pressure has picked up again in the Russell 2000.

At 10 am, to get a sense of where we are, we use a back-of-the-figure envelope using this equation…

It shows 51 positive stocks and 16 negative on the S&P 500.

As we drill down further into those numbers… and calculate for elevated Beta stocks, we come in at 27 to 7.

Giving us a spread of 20.

We’re still positive.

But the challenge is whether buying pressure will continue into Wednesday.

That’s something we don’t control.

Of course, there are many reasons to be cautious. We have the Fed on Wednesday.

We are cautious about stairstep patterns lower as we reach a squeeze top. The SPY is now just 0.2% above its 50-day moving average and 0.7% above its 20-day average.

We will also monitor this situation with D…