Yesterday we noted the SPY position relative to the medium term resistance line and today we saw a clear break of momentum to the downside.
In previous cases of an upper resistance kiss during the past 6 months a reaction to the downside has never been more than 2 days away.
It wasn't a dramatically bad day, the losses across the board were fairly muted but this might be the start of a least a short term correction to get the markets down to a more buyable status.
XLE was the big VEGA loser while healthcare XLV continues to hold its own.
The XIV is not behaving well....note the daily bar chart below....it's ominous.
