Market players have been worried about China trade, currencies and falling bond yields, but today it is increased turmoil in Hong Kong and the collapse of the Argentina Peso that is hurting sentiment the most. These events don't have major economic impact but they hurt sentiment as they confirm that high level of turmoil that is developing.
Breadth is running 1800 gainers to 5100 decliners and there are about twice as many stocks making new 12-month lows than new 12-month highs. Gold leads to the upside but if you are looking for pockets of momentum you won't find much.
Technically the indices don't have much support and you can't help but wonder if last week's lows will be tested. A move in the S&P 500 to Wednesday's closing high around 2892 will cause some concern and will, most likely, trigger some sell stops.
The most important thing you can do in this market right now is to honor your stops. Don't let losses grow. There is a good likelihood that you may sell some things at the wrong time but it is far more important than you control risk. The only way to effectively control risk is to make sales and stand aside.
The good news is that interesting opportunities continue to develop. There isn't any reason to rush into buys at this time but start stalking the stocks of interest. I provided an example of how I am stalking a stock in my weekend column.
I covered part of my index shorts this morning and will look for a remount but I want to see how things develop from here. There finally is a good bounce following the steady selling to start the day. The key now is that the early lows hold up.