Risk: Red on S&P 500, Russell Turns Yellow

A 10 am turn against support, and now four indicators turn red.

Good morning:

I don’t want to be in your inbox too much today… but I do have to send you this to note that both the technology sectors and our S&P 500 readings are RED once again, confirming the fears we had last week with that three-day selloff.

As anticipated, we are now RED on all four indicators. A short-term selloff usually follows a short-term pop… then a drop we’re seeing today.

We’re still worried about the bond market and its impact on collateral quality.

The next support is the 50-day moving average. While there could be some chop along the way, we are seeing an increasing decline in tech and cyclical stocks.

Look for a pattern of lower highs and lower lows.

We’ve been on top of this trend. Keep a close eye on the RSI and MFI if they hit oversold conditions. More important,

Stay positive,

Garrett Baldwin