Your Catalyst For Selling

But they don't tell you that. Use Friday as an example.

Journalists will tell you the stock market was up on Friday. What they purposely choose NOT to tell you is that more than half the stocks in the S&P500 and DJ Industrial Avg were down. 67% of stocks on the NYSE were down. And 75% of the Russell2000 fell in price.

We already discussed all the divergences across the market last month. The Small-cap Russell2000 is just another one.

Notice how the S&P500 and other large-cap indexes made new highs in January. The Russell2000 did not. It's still stuck below last year's highs:

The selling has already started to come in.

But what is the catalyst for further selling pressure?

As usual around here, it's the US Dollar.

The US Dollar Index Futures are rising this morning to levels not seen in several months.

Here's the Dollar vs the Mexican Peso overlaid with the Volatility Index.

In other words, with a rising Dollar, expect higher volatility to come with it:

The new highs list peaked in mid-December.

That means this correction turns 2 months old next week.

We're not "expecting" a sell-off. The selling is already here.

What we're expecting, is the selling pressure to get more aggressive.

We'll be discussing all of this tonight on our LIVE Monthly Strategy Session.

Premium Members make sure to REGISTER HERE if you haven't already.

We'll get going LIVE @ 6PM ET this evening.

There's a lot going on. You don't want to miss this one.

Email Mary if you have any questions.

JC