I am reticent to use the term “rubble” to describe this market sell-off, with the S&P 500 still off only 3.3% from peak to trough. However, I’d be remiss to not acknowledge that my analysis of the regional banks ETF, KRE, missed the mark yesterday, as we are seeing a nasty gap-down in that group today. Clearly, the regionals need some time to heal today’s damage.
I am back up to more than half of my portfolio in cash at this point, though still not yet looking for a major bull market top. Instead, as evidenced by the updated IWM daily chart below, we are now back down to the major breakout points in a variety of sectors. I expect some nasty shakeouts intraday. Overall, though, with rising 50 and 200-day moving averages across the board I am tempering any frustration with a fair amount of patience.