After the bearish opening gap and further downswing continuation, the bulls stepped in, attempting to close the opening gap. They reached its upper border, and were rejected at it.

As for junk corporate bonds (HYG ETF), the bulls there only managed to reach the ETF's opening values.

Since then, stocks rolled over to trade back below 2800, while the high yield corporate bonds so far that decisively haven't.

As for sectoral performance, tech (XLK ETF) isn't shining exactly, and neither is healthcare (XLV ETF). Only the financials (XLF ETF) managed to stage a sort of a comeback, yet their price action is already marred by a sizable upper knot.

Coupled with energy, materials and industrials losing altitude as well, our short position (please remember that 2720 represents a moved downside target, and isn't binding) continues to be justified - risks continue being skewed to the downside.

Thank you.

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