Equities are trading in a muted tone thus far and this tells us the markets working off that massive reversal from yesterday, but remains very vigilant and cautious as if pondering what will be the catalyst for the next leg lower. As noted we pared a few long positions in our GFBP tracker and are looking to set shorts above current market levels as indicators are starting to lean toward a reversal of these overbought conditions in the equity markets. We are a bit surprised the US Dollar wasn’t bid with the sell off and we will continue to monitor that.
As far as the markets right now here is the 6am CST snapshot from Tradingview where metals and energy are seeing the brunt of this mornings weakness:
As far as the SP500 we would like to see a trade into 3165 to sell into:
