The S&P remains within the bounds of its lower support (around 1110) for now. It's worth noting, however, the the S&P remains above the support area of its 2010 lows.
In stark contrast, many "lead" indicators have broken lower, and are now below their 2010 support area.
High yield bond (as represented by HYG, here):
Emerging markets (represented by EEM):
And, due to its correct lead in 2007 and 2009, we'll separately note the breakdown in China (here represented by FXI):
To me, this (along with ECRI calling for recession - which aligns with my suspicion) provides plenty of reason to remain extraordinarily cautious with equities. I hold plenty of short positions, and will take some profits under 1120. But I will also hold onto some position, and will likely add to them if it looks like support is giving way. My belief is that the breakout from our range will be to the downside. One indicator I will be watching closely is copper. Copper has broken down severely, but is still above its 2010 levels. It has both historic price support and a 23% Fibonacci retracement level at $2.93. I'll be watching to see if that level can hold for copper.