There sure does seem to be some magic about Monday sell-offs, huh? For the past two Mondays, there has been a big plunge only followed by perpetual healing. Whether or not Canada and Mexico are actually doing anything NEW is unclear to me, but it was still quite a piece of performance art.
What I’d suggest is to continue to respect the fact that the overall strength of the market (as expressed by the symbol $SPX200MA, which shows the percentage of stocks above their 200-day moving average) is behaving very technically itself, inasmuch as it was range-bound, broke down, retraced, and is now re-weakening. This isn’t August 1982, folks.
