Trending Updates

I looked at the trending changes after market close yesterday and, overall, I would say the risk to the markets is to the downside. There was degradation in all the sectors that I track.

First the SPX sectors:

Almost all the sectors have been weak. Technology has shown the most resilience but is also slowly giving up.

Alternate Sectors:

Again, most of the sectors that would define the markets such as S&P 500 or the Russell 2000 weakened. Interestingly, precious metals have also retreated perhaps because the Dollar has been strengthening.

Conclusion:

The probability is higher that the markets go down further from here. I am short the SPY and QQQ using puts. We have already seen the S&P 500 pull back about -2% from the last week Thursday close. I am thinking another -2% to go.