The action here on Tuesday morning is a continuation of what we saw Monday, but the selling is rotating into the bigger-cap names while the small caps are showing some relative strength. It is likely that small-caps are experiencing some positive movement in front of the Russell 2000 Index rebalancing that occurs on Friday.
Gold and bitcoin continue to lead. Precious metals gained a little more strength following weaker-than-expected new home sales numbers and poor consumer confidence data. The latest economic data raise the likelihood of a half-point rate cut at the next Federal Open Market Committee (FOMC) meeting, which weakens the dollar and boosts gold.
I'm in defense mode at the moment and am working hard to not give back too many recent gains. As I've discussed many times, my primary focus is making sure I keep my accounts as close to highs as possible. There is nothing more unproductive than making losses. I'd rather sell early and rebuy than sit and watch support levels fall.
I've made no new buys so far here on Tuesday but will continue to look for quality names that are finding support levels. At this juncture, the risk to the downside is too high.
The S&P 500 is hitting an intraday low as I write and the risk of a trend down day is increasing.