After a strong two-day bounce, market players are finding some good excuses for selling today. The top reason is that the indices are running into technical overhead after the gap from Monday is filled and the 50-day simple moving average comes into play.
As is so often the case the technical difficulty occurs at the same time as news events. Last night the yuan was fixed over the 7 level again and this morning President Trump made several negative comments about the likelihood of progress on China trade. He even hinted there may be no meeting at all in September. If market players were looking for a reason to sell that was a convenient one.
The action is more technical than news-driven at this point but the news flow makes for simple explanations. The indices are still well above the lows hit earlier this week so the selling today isn't that significant in a longer-term context. If those lows around 2825 of the S&P 500 fails to hold then there is going to be some real panic about a significant market correction. That isn't an issue today but it will be extremely important for the rest of the month.
As I mentioned on Twitter, I remounted some index shorts this morning in the form of ProShares UltraPro Short S&P 500 (SPXU) . I have flipped some for a quick gain but may build it up depending on how things look into the close.
I've taken a few stops on individual stocks and am not seeing much I want to buy at this point. There are plenty of stocks that are potentially interesting but the entry points just aren't there right now.
It is a Friday in August and I doubt there is going to be much interest in buying into the close today.