T2108 in rapid decline

T2108 is Worden indicator that measures % of stocks above their 40 day moving average. As you can see it is rapidly deteriorating . As of now only 39% of stocks are above their 40 day moving average.

In swing trading you want to see rapidly expanding breadth as it shows buyers coming in to market. Current markets indicate sellers in control.

Buyers have continuously stepped in on minor corrections so far, however now less and less stocks are participating in the up move.

I am extremely caution mode. Big drawdowns can happen in the kind of phases if you are too leveraged or have too many open positions.

Big intraday moves continue to happen and day traders must be laughing all the way to bank but for swing it is a risky period.

Playing great defense is important if you want to survive and prosper in this game.