We’re sticking with our Buyer’s Cation, Yellow Flag bias as the bear appears to have at least one paw on the wheel.

This recent rally is likely a selling opportunity. Look to the support levels of the 200-day moving averages on the major indexes as downside targets.

We’re keeping a close eye on the bellwether Semiconductor Index ($SOX) for direction. Technically, the sector is positive with a bear-burning trend above its 50-day average. Though undoubtedly bulls are choking with a failed breakout in the books. This is the heart of the battle, imho.

Stay tuned.