The tug of war continues with the bears wresting control.  As I mentioned this morning, there are no scheduled events for Fed Chair Jerome Powell to soothe the angst.  Meanwhile, that angst continues to ratchet higher, as the ten year is on the cusp of piercing a major resistance point at 1.50%.  This has triggered the sharpest rise in the VIX this year.

Ten Year Yield

VIX

Overdue Pullback

You do not have to be a market technician to decipher that the S&P 500 and all the major equity indices had gone parabolic.  You could easily argue it is due to pullback.  On that note, this is the time to consider when an overdue pullback could become worse.

For now, the two key downside support points:

• 3,805 (50-day)
• 3,714 (bottom of channel)

SPX

This isn’t time to panic, but it’s a good time to be honest about things in your portfolio that might be overbought, or where the underlying value proposition has not kept up with a rise in share price.