Smaller stocks had outperformed large-caps for much of 2018, but now find themselves down for the year to date after a tough couple months.
It is the sort of negativity that produces capitulation.
One way to generate stable income and protect against rising interest rates is through a bond ladder.
There have been some solid earnings reports, but they haven't provided a boost to the broader market.
The biggest risk right now is the yuan level versus the dollar.
The Federal Reserve should, but likely won't, stop hiking rates before it inflicts more economic damage.
The other involves taking advantage of late-day rebalancing by ETFs.
Big-picture concerns are intensifying selling pressure, which favors bargain hunters in search of individual stocks.
After recent liquidation, it seems the risk-reward is on the downside for the dollar and U.S. bonds.
The analysis of time clusters is a key ingredient in anticipating when to make a trade.