The increased selling pressure has forced me to lighten up my long exposure this morning. A few names that I was holding had started to break down from technical bases, and I am more inclined to cut any losses, however marginal, in those situations than I am to hang around to see just how naughty things will get. I am seeing mixed overall signals as to whether we truly are rolling over here. As an example, FCX is still basing calmly above all of its moving averages. While I am not in the bearish camp at all, my selling discipline did see me raising cash.
As you can see on the daily chart of the S&P 500 below, we are trying to stabilize at a simple trendline dating back to June. We are also still comfortably above the lows of last Monday (07/18). Thus, as bearish as the action seems this morning, the technical damage is minimal.
_______________
