Muddy and Choppy pretty well describes the short-term in the 500. Recent rally wasn’t that big of deal and todays roughly 1% decline hasn’t broken any key support.

Game Plan….Per the long exposure in the equity market, remain heavy into the high yield funds and PFF.  As I shared in the chart above, if support line (3) is taken out, being defensive most likely won’t be a bad idea. 

 Pre-market this morning (see post here) I shared that the Dollar, for the first time in months has broken above its falling channel.  If history is any guide, an upside movement/breakout will create price challenges to commodities and most stock markets

With the Dollar breaking a steep falling channel, should the broad market break support dating back to the 2009 lows, even slow money (401k’s) should be very cautious!!!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past