In our Dec. 5 note, Hitting Resistance, we argued the case for continued caution.
With the S&P 500 $SPX testing its channel resistance, the US Dollar Index $DXY sitting on long-term support, and the correlations to legacy markets getting tighter, there was no conviction to be had in long positions.
In recent weeks, we've seen risk-off action persist, with the S&P closing the last two weeks down more than 5%. Further, altcoins have slumped, with many taking out their November lows.
This remains an incredibly sloppy tape, where high cash positions and patience provide the trading edge.
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