The present negative breadth cluster, the fact the Dow/YM is still showing remarkable resiliency, the S&P/ES holding above a very critical level and the Russ 2k/TF presently trading at its day session highs strongly suggests caution about pressing the short side too strongly at the moment. The reaction following a test this afternoon of the lows established in early trading should be quite telling. Note the Naz did take out a critical level but it is trading at its day session highs, too, at this moment.
The better part of valor at the moment as far as trade strategy is concerned is to let the day “mature” a bit and then re-visit the indices this afternoon around 1:30-2:00 PM, EST to see if something may be setting up. I would only be trading this market near its high or its low. Don’t get caught in the mid-day chop fest trying to guess a directional break.
Breadth is trending higher at the moment: WATCH AND HEED THE TREND OF BREADTH.