USA mains are healthy, and not yet at resistance (close but not yet). Safe havens TLT and GLD which dominated the first half of 2016 are both below monthly pivots. This is not a huge deal in itself, but consider the stock rally that began in February solidified when indexes reclaimed monthly pivots after holding major levels (similar but not exact, with TLT and GLD topping out on Q3R1s, while nearly all stock index lows involved YS1s).
Sentiment is not too toppy, oil is rebounding back above all pivots on the CL1 contract, USA small caps and global stocks all participating, and China is making a move. Weak links DAX and NKY held pivot support on the recent 8/2 area lows. Risk assets are looking good here.
If I were running a fund here I'd be nibbling on starter shorts on DAX with r/r (risk reward) clearly defined at the YP. Otherwise it is wait and see what happens on INDU set YR1s, which I have been consistently pointing to as a primary target for the last few weeks in Total market view posts.
SPY below, and for a change of pace, the INDU set - keep an eye on those YR1s because they are within reach! That would be 18727 cash, 188.03 DIA, 18688 YM1, and 18782 YMU. These vary a bit, but if we get 2 or especially 3 tagging and reversing, especially if sentiment picks up, I will be thinking trading top.
And lastly, DAX below too - a perfect short idea. YP tag and drop, RSI overbought, top of daily and weekly Bollinger bands. Although if you had 200% leverage possibility you'd probably want to be 180% long and 20% short in this kind of market, max (let's say 10% short TLT per my rec of 7/6 to short 143.64), 5% short GLD, 5% short DAX with possible add in the near future).