After a brief flicker of fear, when volatility spiked above 30, the VIX is hovering around 20 suggesting uncertainty. The market is undecided whether to take this Twitter War seriously.
The S&P 500 is again testing primary support around 2550 but Twiggs Money Flow remains comfortably above zero, indicating long-term buying support.
Twiggs Volatility (21-day) is still in the amber zone, between 1% and 2%. A rise above 2% remains unlikely but another trough above 1% is my primary concern and would convince me to reduce equity exposure to 50% (of portfolio value).
J.P. Morgan once had a friend who was so worried about his stock holdings that he could not sleep at night. The friend asked, “What should I do about my stocks?” Morgan replied, “Sell down to your sleeping point.” ~ Burton Malkiel