Postcards: Six Rules for The Continued Selloff

The Russell 2000 just broke under a key support level, and selling pressure has taken eight sectors into the red. What now?

Dear Fellow Expatriate,

It’s been two weeks since the Federal Reserve released minutes from its December meeting, and selling pressure has built steadily across the markets. But now, we’re heading into a much more dangerous environment.

Time to turn off the screens? Maybe hit the beach? We’ll know more by Wednesday night. But for now, the trend of the late December 28 top seems correct. And we’re in a bit of a market too similar to the start of 2022, as I’ve warned for weeks.