Walking the dogs on Sunday, we came upon this trash in the weeds.

Ironic, because it appeared one day after the horror in Virginia.

Ironic, because rather than thinking the tossed “America” beer can is a sign from the universe, instead it reminded me of those who think throwing trash from their cars is ok.

Ironic, because after last week’s sell-off, I wonder if today’s bounce was merely an opportunity to lighten longs.

Ironic, because I wonder if today offered a cheaper entry into countercyclical trades.

Ironic, because I wonder if today gave us a lower risk opportunity to go short (buy puts).

I wrote about Semiconductors over the weekend.

The ETF (SMH), a leader of the Modern Family this year, and “my fancy portal” …” serves two very important functions as a market predictor.”

Today, SMH rose by 1.97% on light volume.

We got the buyers back, though without the volume. SMH went into an unconfirmed bullish phase.

Given the move higher, have the trash collectors come to clean up the side of the road?

Semiconductors improved in phase (needs a second day to confirm). Yet, the Russell 2000 (IWM), Retail (XRT), Biotechnology (IBB), Transportation (IYT) and Regional Banks (KRE) did not.

The Russell 2000 is in a warning phase. Instead of free falling further, IWM held the 200 DMA. It held a channel low on the daily chart.

IWM did not clear the 10 or 100 Daily Moving Averages. The 50-DMA sits well above current levels at 140.80.

I am considering the opportunity to buy puts or go short the Russell’s should it fail to trade above 140.80-141.00.

The risk seems clear enough—above 144.25 or the all-time high.

Should IWM stall ahead of the 50 DMA, that risk can be reduced to above 141.

However, Since SMH leads, I will look first at the action in SMH.

It must confirm the bullish phase with a second close above 85.57. If it confirms, I will exercise patience with buying puts or countercyclical instruments such as gold and interest rates.

If SMH cannot confirm, or more likely, SMH manages to confirm yet rolls over later this week, ponder selling short IWM and/or his Transportation (IYT) offspring.

With August half over, it’s conceivable that as fast as the collectors pick up the trash, is as fast as new trash appears.

S&P 500 (SPY) 245.55 support. Unconfirmed bullish phase with resistance at 247.

Russell 2000 (IWM) Lot of buyers have to come in to get this back above 140 and the 50-DMA. I got doubts the rally can sustain

Dow (DIA) Ultimately, 218.49 is the number to hold before this throws in the towel.

Nasdaq (QQQ) Confirmed bullish phase. Has to clear 144.20 now

KRE (Regional Banks) 54.00 major resistance. 51-52 support

SMH (Semiconductors) 88.35 big resistance and 86 closest support. Then there’s the 50 DMA

IYT (Transportation) 166.50 pivotal support. I really wonder how this can get back above 170 but will wait to find out.

IBB (Biotechnology) 311 the 50-DMA this must clear

XRT (Retail) 40.00 pivotal resistance. Lots of earnings on tap

IYR (Real Estate) Unconfirmed bullish phase

XLU (Utilities) 53.74 today’s low and support

GLD (Gold Trust) Decent volume sell-off from Friday’s high. 121 support

SLV (Silver) 16.00 support if good should hold

GDX (Gold Miners) Back under the 50-WMA for now.

USO (US Oil Fund) Haven’t much to say until this changes phases on a weekly chart

TAN (Solar Energy) 21.40 now the closest support

TLT (iShares 20+ Year Treasuries) I’m looking at that exhaustion gap high to see if this gets close to it or not

VXX (Volatility Index) And just like that-fear gone.

UUP (Dollar Bull) 24.20 pivotal

FXI (China) Possible exhaustion gap top if cannot get back to 43.20