Heads up! While not a full fledged caution/trouble alert, we have a semi-one today, with VIX close above the Q2P. I don't mess around with VIX breaking out to upside!

In headline news, the FOMC unleashed the elephant in the room of the 4.5T and given the technicals I think this more than a one day drop.

Yesterday the +s and -s seems about mixed, with slight edge to bulls. Today, however:

-s
SPY, DIA, & VTI rejection of AprP
IWM rejection of Q2P
XLF, popular trade of 2017, also rejection of Q2P
GLD above all pivots
TLT above a quarterly pivot (3rd day in a row) first time since 2016 Q3
VIX above Q2P! (last but not least)
Global indexes - all 7 that I track - all above all pivots yesterday, today ACWI below AprP (and rejection of YR1 on top of that), EEM YR1 rejection, EWZ slightly below AprP

+s
SPY, DIA & VTI still above Q2Ps
QQQ above AprP - key level to watch!
XIV also above AprP - another key level for Thurs

Today the -s clearly outweigh the +s and it is time to take some action. That said we want to hold what has best chance of rebound.

EWZ last add was debate compared to RSX and I chose incorrectly; that's out below the Q2P / AprP combo, but may buy back if somehow market rebounds.
Don't like EEM YR1 rejection but still like idea of global out-performance, so will hedge on 2 units.
IWM 2017 lagger clear rejection of Q2P, short hedging 2 units.

This takes portfolio to:

10 longs, 5 hedges, 50% net.

I will change opinion with VIX back under Q2P. If XIV and QQQ cave on AprPs, it may be correct to be even less long.

SPY, EEM, IWM and VIX below.