Bonds were trading lower, rates were up and energy traded higher. So why are we surprised the market reversed? If you have been following these signals over the last few months this is exactly the regime we have been talking about. Reversals only are happening right now if the bond market is trading higher.

Because the bond market start to trade higher as stocks were getting hit, I think this is a clear signal that we should see reversals in similar fashion to what we have been seeing for months. I don't see the chart below being floated too often, but would you be shorting here on the small caps? The answer is no: you are at support.

I've attached a video below for further analysis.

Link: https://www.youtube.com/watch?v=0un6gXaIgtU