I mentioned last week looking for slippage in the relative performance between SMID caps vs large caps, and for panic buying on the upside, and in the last week we have seen both of these signs.
Yesterday we had panic buying and today we had a sign of the changing of the guard (the S&P 1000 fell 2.38%, while the S&P 500 fell 1.67%).
If this keeps up, we'll get both a rollover in the market, and a change in leadership.
We've had four shots at breaking 1210 on the S&P 500 in the last month. The S&P 1000 looks as though it is rolling over, having peaked April 26th, and volatility is increasing within the markets as a whole.
Hard to know whether todays price action was simply end of month shenanigans or something else. The way I see it, investors are vulnerable to traps on both the bull side and the bear side of the equation.
When in doubt go to the sidelines.
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