NOTHING appears without a Sign: Small Caps 'gave it away'.

US Small Caps ($SML) Daily Close @ 02/05/2018

S&P600 Small Caps was the 'Canary' this time with overt Key Daily Reversal January 24 & a few days before the 'Rot' set in for Global Risk Assets.
Simple 38% retrace of the post 7% Correction (Aug 18: 813 Lows) Record setting Rally to 982 @ 918 'dusted' in Mondays' Large Down Day with the 61.8% retrace @ coincidentally the VERY SAME 878 previous High Water Mark pre the said 7% Correction (-666 / 7%'s?)....
More pertinently should such be witnessed; a rare Quarterly Key Reversal in play (No New Highs < end- march) with huge implications for Risk.

Trump Rally does what The Donald does best....be 'EFFECTIVE'.

S&P500 Daily Chart @ Close Year- End 2017

2017 ends with the Trump Rally continuing to surprise even the most ardent Bulls with ONLY the Sentiment #'s NOW registering a 1st for the Year (previous Week) & a 2nd Week above the 50% threshold of potential misplaced 'over enthusiasm'...leaving us vulnerable to another 'Correction' of sorts?
Thus far such have proven to be both shallow, fleeting & elusive (Positioning wise) for all & sundry.
Same again or a January 2016 'surprise' just to keep us 'honest'?

Small Caps advance; but's it's 'not where 'it's at'........

$SML Small Caps Weekly Chart @ Close 11/01/2017

As noted in our previous post; further Gains were the likely path forward. That said & the Big Cap narrowly based indices are where the real action is; notably the NDX100 & OEX.
As per THE WEEKLY; the ongoing 'boring' BUT only posture is to 'sit tight' & await a CLEAR & OVERT Signal that the Trump Rally is due a meaningful Correction.

US Small Caps STILL @ Dec 5' 2016 Weekly Close levels......

 Small Caps S&P600 Daily Chart @ Close 08/04/17

2017 YTD Price Action for the broader US Benchmark Index (S&P500 + 100 = 600) continues in Time Corrective Mode whilst other more narrow (DJIA) & heavily weighted/ concentrated (NDX100) indices continue their relentless ascent amid Sentiment #'s (Low Bullish Consensus) that suggest more is in store before a Price Correction of meaningful intent finally occurs.

FINALLY......Signs of a meaningful Correction?

NDX100 Daily Chart @ Close 06/27/2017

Long time between updates as the Small Caps basically trade sideways (Time based Correction); the NDX100 has beeen 'where it's at' for 2017 & perhaps finally a 'crack' of sorts (Daily Close below Up- Trend Line > Dec16) basis Tuesday's Close @ 5671 amid further heavy losses?
A simple yet 'hefty' 38.2% retrace sees 5450 as the potential 1st Stop on this move lower; beyond that & matters get interesting ......interesting enough for the much mentioned (THEWEEKLY) sub 1.90% Gap in the US10yr Note to finally get a Fill of its own?). Time will tell.