If you were prepared to make a defensive adjustment coming into today based on certain signals, it was a good day.

Nearly all of the bearish signals that I pointed out as possible in the latest Total market view happened today.

“If all these happened:

NDX break of MP along with further rejection of YR2
DJI rejection of HR1
VIX lift from YP
RUT break of MP - keep in mind it has already topped on QR1 8/31
SPX high test and rejection or best case QR1 at 2925 then down

Then a lot would be checking off on the TPP top checklist.”

Check, mostly check, check, check, check.

But it is interesting that safe havens other than VIX could not rally on today’s news. Also, SPX & DJI were not hit nearly so hard as NDX and RUT which suggests an institutional re-balancing move and not just trade war fears.

Being in cash when multiple USA mains are showing rejections of long term resistance, monthly pivot breaks and VIX confirmation is usually the right move.

SPX, NDX, RUT and VIX below.

17 3 RUT D.png
17 4 VIX D.png