The worm can turn fast in the stock market. Risk appetite has left the building over the last couple of days as you can see by the dramatic move higher in the VIX since Friday morning. Europe continues to rollover on Brexit fears and China is starting to play dead again. So its a confluence of bad bad things right now.
Some technicals on materials (XLB) and energy (XLE) crossed down today, but its still very early, so I’m not worried. yet.
Many of the negative issues that I highlighted in last nights video are still in place. Practically all of the stocks and etf’s mentioned, continued lower today.
Yellen speaks Wednesday, and although there wont be any rate hike, the market will look to dissect every word and every syllable for clues. Bottom line….. the fed is still data dependent.
I still think we’re in for some turbulence here.
See you on the morning.