4:25 pm ET: The "risk-off" trade was in play today meaning that investors were seeking safety in bonds and the dollar. Muni bond fund etfs got a nice boost with a dozen of them hitting new highs (dividend yields in the 5%- 7% range). Commodities and stock sectors were down pretty much across the board. The so-called "soft" agricultural commodities continue to weaken with grains (NYSEARCA:GRU), Ag (NYSEARCA:JJA), corn (NYSEARCA:CORN), and livestock (NYSEARCA:COW) all breaking lower support levels.
Although the major averages closed in the red, the DTX is has managed to stay above critical 420 support. Rising volatility could easily cause this level to be violated as early as tomorrow. A VIX close above 17.5 would be a sign that the bulls are abandoning ship.
Not much else to report today other than some profit-taking in the homebuilders which is quite understandable considering the incredible run they've had. The new home sales figure reported earlier today missed expectations triggering the sell-off.
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