Days like today where SPX is trading lower by more than -1%, the T2108 is usually getting clobbered. 

However, that is not the case today. You do have SPX looking absolutely ugly, giving back nearly all of yesterday’s gains into the close. 

And along with that the 5-day moving average. 

But the T2108 (which represents the percentage of stocks trading above their 40-day moving average) is really holding firm and above its 5-day moving average.

It isn’t unusual to see 20-30% moves to the downside on a day like this with the T2108, but that is not the case here. 

However, that doesn’t mean that I don’t trim some long positions before the close, just to be safe. I’ve already done that today with my Facebook (FB) position and may do the same before the close with a couple of others too. 

For now, know that the world is not crumbling again like it did earlier this month and back in January. I need to see more confirmation before it would make sense to load up on a bunch of short positions.