The market this morning is not in a bullish light to say the least with the NASDAQ looking to open Down 28 points.
Before we jump off the deep end though, keep an eye on the 2456,2449 and 2441 level for clues as to the possible fallout from eminent lower prices. It is very possible that this may simply be one more shake-out before the market moves higher.
I continue to remain very cautious in here with under a 50% allocation in my Aggressive Equity Trading Accounts. Typically if I were a flat out bull I would be sitting on a 100% to 150% allocation exposure and that is not including the leverage from options.
However, if we begin to violate these support levels, I will not hesitate to go to 100% cash and wait it out. The downside risk from here looks to be limited to 4-6%, but you never know.
These are not the times to have your portfolio dollars on cruise control that is for sure.