The overall weakness of the spreads continues.  This whole SPY rally has moved the needle only from -84 to -76, which is not enough even to begin to turn the model to Risk On.  This indicates that the equity market will find a good top very soon.

Individual shares have been pummeled and some very bad damage has been done to a variety of leading shares that have been flying high.  I encourage you to work with the Database to see if your portfolio needs to be changed in composition.  Hight quality shares are likely to outperform high beta names.  The name of the game has changed from Growth to Capital Preservation. But now there are some very good bargains.  See if your favorite names have reached areas you consider as value and see how they are performing against the Benchmarks in the Database. I continue to nibble at some good names, there is very little reason not to. Markets are deeply oversold and you can definitely expect bounces of good quality names.

We will endeavor to bring you many more indicators in the next two weeks ahead, specially to enable you to look at bargains in individual sectors during washout periods in equities, when people are panicking.

A video of my detailed expectations for the near term, with important levels to watch, can be viewed at