Scott Redler: When Signs of Trouble Add Up

I came in leaning short today for the first time in quite while.

The bearish signals really started adding up last week. Last Thursday, I told Redler-All Access readers:

We’ve had great action in tech, F.A.N.G. names, small caps and bios.

But banks, other sectors, and overseas markets are a bit of a drag. It makes me wonder how long things can last. So I’ve cut my long exposure and I’m trying to be a bit more selective after a great move from the May 3-4 Red Dog Reversal low and igniting bar. It’s harder to find tight setups. I’m not saying we will crash but I’m tapping the brakes.

I followed up this past Monday:

Last Monday, I came in with 15-20 swing longs and options positions. Last week, I saw lots of signs to get flexible so I’m coming in lighter today.

Yesterday, I told CNBC "the small caps for the first time in a while are weaker than other sectors. It's giving traders some signs to pare down risk.

And today, I came in with 2 equity shorts (NVDA which I covered premarket, and FB)

Here's how I'm viewing the action today. Today, I want to see how the market handles 2698. Do the sellers break that for an air pocket towards 2650? Or is there a Red Dog Reversal long opportunity?

Tech became vulnerable last week with QQQ losing the 8/21 day. Then it got rejected on the rally back.

Now let's see how it handles the $169.61 pivot. $167 is bigger support below.

FB's lower high and Red Dog Reversal sell signal got me short yesterday.

I want to see if it continues toward the 21 day. Yesterday's low is $195.80. It's below that premarket. Let's see if it stays below.