Nothing much happened yesterday: the 20DMF was range bound and small caps continued to underperform.
Since the last 20DMF buy signal of July 19, the S&P500 has lost 0.07%. This is a truly flat market. Investors must be watching the political show instead of following the markets.
Small caps are underperforming, but there is no rational reason, except that a US tax overhaul does not seem imminent.
The reason for investors to sell the largest tech stocks could be linked to a weaker US$ combined with the fact that Trump's trade wars will be very negative for large international US stocks.
The NQ8 stocks continue to be sold, although their MF is still positive.
On the Index followers front, the QQQ is slightly sold while the SPY is slightly bought.
Conclusions:
Shorting the small caps is what works, but the IWM/SPY ratio is at the bottom of its envelope, which is a place where bounces have occurred in the past.