First Down

I made a pilgrimage to save this human race
Never comprehending the race had long gone by
--Modern English

Domestic stock markets saw their first 1%+ down day in months. European markets fared worse, with many bourses down more than 3%.

Technically the near term uptrend in many major indexes can be regarded as broken. Also, we are back below the 1360 level - previous support now becomes resistance.

If this selloff gathers steam, then downside milestones include SPX 1320 (50 day MA) followed by support at 1290. Below that, 1260 appears substantial support. That would constitute an 8% decline from last weeks highs if/when.

My growing sense is that the highs for the move have been put in. However, a bounce that retraces much of today's downside in the next couple of days would not surprise me (knee jerk dip buyers plus frustrate the shorts). Should that occur, I'll be looking to trim long exposure and add short exposure. Currently net long to the tune of about 5%.

position in SPX