So far it’s been a pretty ugly week for the markets. While we have not yet seen a 300 plus down day on Stocks Down 4% or greater, many leaders have taken it on the chin.

The spx is now sitting under the 4 ema. Combined with the action we’re seeing from the leaders (BIDU, LULU, OPEN, SOHU, APKT, LUFK, Silver) cash seems like the safest place to be right now.

At this point, I would like to see a 10% or greater correction which would reset many stocks and offer some new opportunities on the next wave up.

1340 on the S&P would be our first target for some type of bounce. Unless we see some new leaders emerge fairly quickly I’ll sit that one out.

Hopefully, you had your stops in place and were able to avoid some of the carnage. I have been tracking some stocks like IIVI, ACOM, IPGP, GMCR and will keep a close eye over the next few weeks.