S&P 500 Goes to Red... But..

A move below the 20-day moving average and surging weekly 5% losers says that money is flowing somewhere... BUT...

Dear Reader:

I’m sending this to you because the S&P 500 ETF (SPY) has moved under its 20-day moving average and outflows have accelerated on the Russell 2000 and the S&P 500.

Now, there is a caveat here.

It’s the Third Friday, a day on which $2.7 trillion in options expire… But I don’t usually see this sort of movement on expiry days unless they are Quad Witching events in March, June, September, and December (also the third Friday of those months).

First, the math: The equation has gone negative, so we have to be very cautious. We have 15 stocks in our elevated Beta area for Breakout stocks (B Segment).

But the number of Falling (F Segment) stocks is 31.

This has all happened in the last 24 hours. This is the first time we’ve had a serious turn like this since December 10 (the market bottomed out on December 18/19).

The reactions have been sharp, especially with weakness in cruise lines, domestic oil producer Diamondback Energy (FANG), and industrial stocks.

There are a few issues in…