GOOD QUESTION I guess if we had a GPS, it'd be a bit easier.
FIRST, we could see where we are. If our elevation were 8900 ft above mean sea level, and the highest peaks in this area were 9000 ft, well we'd know we had no place to go but down. If the GPS could hit four "birds" it could tell us our rough elevation.
So where are we? The previous chart says we are at a TOP. Nothing I see reverses that, after all TOPS are made of Relatively good feelings. So the news is lousy as it has ever been, and things arent so great, but no one is feeling down or threatened yet.
Basically if you look at where the market has gone since the first of the month, one word does it. NOWHERE ! 7800 to 8200 back to 7800, that spells DISTRIBUTION.
Two words summarize it - Direction = nowhere ; Condition = Distribution.
Not good words for LONGS. Same rules apply. Protective Stops IN PLACE.
Potential Buy Stops in place for the few stocks you want.
Right now, selected energy and selected PM's, yes thats what I am looking at now.
The question is really what your doing to protect yourself. Basically, inertia, rather than alarm is ruling and complacent behavior is ruling the moment, as if we are out of the woods, which we are NOT. As you know, the market will fluctuate. This will be one of those fluctuations. Make sure you dont get caught in the gears.