- The sell-off this morning wasn’t accelerated and reversed after the first half hour, probably due to the governments intervention in the markets and trying to hold it up. However the facts remain, the markets have been trend-up for too long without a significant pullback/retracement and the upside has run out of steam. I don’t see any big up-moves happening here, even on good news, but it looks like there may be one last move upwards before we head down. Take no new longs here, only shorts. But, remember that the market will still probably head a little bit higher from here, probably just above the new highs made yesterday in $SPX.
But with 50% of companies in XLP & XLY that reported missing revenue estimates, things have obviously already turned, the market just hasn’t realized it yet.