The U.S. stock market delivered a widespread decline on Monday. There was no discernible catalyst for the pullback. You could argue the bull market had gotten a little bit ahead of itself. Profit taking was actually pretty mild with the S&P 500 down -0.39%.
On the CNBC Halftime report they had Laszlo Birinyi, the found and president of Birinyi & Associates as a guest. He said it's not too late for investors to jump into stocks and predicted the S&P 500 would hit 2100 before year end. It appeared no one was listening.
What is concerning is the action in the small cap Russell 2000 index ($RUT).
The index underperformed with a -1.7% decline.
The $RUT is retreating from resistance and could be forming a potential bearish double top pattern.
Overall we hesitant to launch new positions. We are not adding new plays tonight.
(daily chart of the $RUT)