Short-term Risk is to the downside.

The very short-term risk is to the downside. Having said that, we could see a very brief fall of 1-2% before the bulls take over again. Today’s price action was sluggish and seemed like the bull strength was dissipating.

Major markets were mixed:

The VIX was actually slightly higher all day and then ended close to flat. And, the SPY, QQQ and DIA had also touched red before bouncing back at the close. The IWM also bounced back from its lows of the day.

The sectors were mixed:

The XLRE was the biggest loser after being the biggest gainer last week. Interesting to see that the defensives, XLV and XLP, were positive. Market breadth was weak with 62% of all US stocks declining.

So, for very short-term trading, I would favor the downside. Then see where it takes us.