Short Term Uncertainty

The markets are experiencing what, at this point, looks only like profit taking from the recent leg higher.  The lows from last Wednesday should be closely monitored, breaking them could lead to an erosion of confidence which brings about further selling.  For the remainder of the day it will be interesting to see if the 5day moving averages (shown in orange) act as resistance, if so I would suggest more caution.   If the gains in the QQQQ, SPY and IWM from last week are given up this week this latest strength may prove to be a trap, there is no evidence of that yet, it is just a potential scenario to be aware of.  The financial stocks remain the most resilient as they remain above their rising 5 DMA.