Heading into the long Memorial Day weekend, here's how I would play the S&P 500.
Several 50-day moving averages for the indices have been violated.
Only one major stock index remains in a negative trend. Guess which one.
With MSCI increasing the weight of domestic Chinese stocks in its global index weighting, what happens in China does not stay in China.
Let's look at the latest charts and indicators.
Raise high levels of cash, cut losses and then engage in selective stock picking as stocks find support.
We would need to see some improvement in breadth and bullish technical violations on increased volume to become more encouraged.
We are seeing chart and breadth deterioration, while sentiment remains a concern.
Reputations must be earned initially, but they often persist well beyond their 'sell by' dates.
When market players are fearful they don't buy small-cap speculative names like they did Monday.