1. Possible August Top- Similar to 1987
2. Technicals & Fundamentals are deteriorating- 50 DMA line was support and is now resistance
3. Recent lows are breached and leaders under pressure
4. Crude Oil is surging – Higher energy prices act as an indirect tax on businesses and consumers.
5. Interest rate sensitive areas of the market, Financials, Transports, small and mid caps are all under pressure
Final Note: In our view, the likelihood the Fed tapers in Sept has reduced markedly.