Postcards: Yes, The Market Game Is Rigged (The S&P 500 Goes Red for an Hour)

You thought the carnival barkers played fair? Of course not. Knowing what you're up against if the first trick - allowing you to decide if and where you want to play.

Market Update: We were RED across the board heading into the final hour, but look for institutions to do some bidding into the final hour. We’ll wait til the end of the day for confirmation and chat about it in the morning at Republic Risk. Massive outflows today and an explosion in the VIX. It is time to pay close attention to the oversold levels of the RSI and MFI on the S&P 500 Index. This selloff was somewhat predictable, and volatility is likely heading higher into options expiration in two weeks. As I noted in my first warning today on the Russell 2000, look for stair-step patterns with short-term pops and institutional selling. We’re over the wall, and it’s time to build some cash - as investors turn to cash and similar assets. The dollar is popular in these types of downturns. We’re negative on ADX on the QQQ, IWM, and SPY. Get ready.