Lunchtime Recon

Good Afternoon,

                       The kind of morning where the S&P 500 itself ignored technical buy signals .  The kind of morning where the “buy the dip” crowd runs out of margin, or worse yet… faces up to looming margin calls.  The kind of morning where the trader looks at his bond allocation, and says “That’s why I’ll never dump you”.  Same for Gold, which by the way, seems completely unfazed by US Dollar strength.  Let’s survey the landscape.
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1)  The S&P 500 has bounced off of 1991 twice now, finally forming a support level.
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2)  Small caps continue to under-perform, despite their perceived insulation from currency exchange rates.
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3) Aside from the already mentioned safe-haven behavior seen today from Gold & Treasuries, Utilities, and Tobaccos are performing well.  The VIX however is performing with the overall marketplace.  Perhaps, there is a bet on an afternoon rally out there.
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4) Financials continue to be the “Ugly Duckling”.  They are obviously the most heavily impacted part of this arena, and we will likely see more of that as volatility becomes the “new normal”.
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5) I have a feeling that vacations may be scarce this Summer.  Just sayin’.  Good thing we love this stuff.