Market still under pressure, as expected and signaled by the deeply negative spread score. You ignore risk spreads at your peril. Scores now as negative as at depths of 2015,’11 and ‘08.

The weekly Counter-trend model gave a buy signal end of week before this and we are long SPY.  This model has a -3/+5 risk tolerance and a close after 15 trading days if neither achieved. We are in Risk OFF, so this is a trade, NOT positioning.  All we are looking to do is enhance returns.  We will be out of this trade week after this (at latest) whatever happens.

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.

A video of my detailed expectations for the near term can be viewed at