Our gap indicator showing the divergence between a ratio of LQD/SPX and its moving average, has expanded further below the moving average line. See the chart below.
Such gaps tend to proceed a bit of profit taking in the S&P 500 (see the red dotted lines). Interesting to note also the green dotted lines, whereby the gap is recovered (or there is a gap ABOVE the moving average), signaling a good time to be long.
Today's reading suggests that hedging long positions is in order.