The S&P 500 downswing is unfolding across the board. Formerly strongly performing and the index heavy weight, technology (XLK ETF), is declining profoundly, joined by financials (XLF ETF) and healthcare (XLV ETF).

Credit markets are confirming and leading lower, with both high-yield corporate debt (HYG ETF) and municipal bonds (HYD ETF) losing ground against short-dated Treasuries (SHY ETF). Even investment grade corporate debt (LQD ETF) is gently peeking lower while short-term Treasuries (SHY ETF) are trading close to unchanged and longer-dated ones (IEI ETF) challenge their recent highs.

That's a bearish constellation, making the downswing likely to continue over the nearest sessions. Our short position remains justified.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care