Risk: We Just Went Red... on IWM and SPY.

So much for the euphoria.

Dear Fellow Expat:

Well… this is something.

I didn’t have it on my bingo card as BTC is still holding up.

But money is flushing out… in the form of profit-taking and fear of higher rates.

Look at the Technicals for the SPY - they’re all right there… right at the yellow lines. This was a steep reversal on the MACD. So, we’ll see how it goes, but I’m discouraged by the action on the RSI, ADX, and MFI.

We’re also holding at the 20-day moving average for the S&P 500 ETF (SPY).

I expect some chop and maybe some short covering towards the end of the day—especially the final hour. The core problem right now is that the volume is heavy…

So selling is heavy. Roughly 71.5% of stocks are down today, and over half are under their 50-day moving average. What’s worse - technology is getting crushed.

There’s something materially off… so proceed with caution. Use hedges and pay close attention. Markets might not like all the talk about cutting government spending at such levels. That would easily kick us …