Greetings from Krakow, Poland where soon we will be heading to the Auschwitz and Birkenau concentration camps. You hear that Sean Spicer? Dude! Just go to and you will know what went on there.

Markets continue the topping process while major indices are down just a few percent from the highs. We have been highlighting for you on an almost daily basis all the internal deterioration that has been going on…for weeks.

Retail has been in a bear market for a long while. Transports topped out weeks ago. Commodities topped out weeks ago and now look to be taking another stair step to the downside. Energy topped out in early December. We can go on and on but now:

The all-important financials topped out a little over a month ago, broke the first line of support and now is on the verge of breaking the second line of support. Needless to say, you know how important this is as they led the market up since the election. Watch the $23 for the XLF.

And now the other all-important area, the Semis, have now broke below first line of support and are under severe pressure. This group has come a long way, thus the one-sided trade is in effect. This means everyone is on the same bus and when things turn, everyone gets off the bus at the same time.

We know earnings start up with a few important financials. We are not so sure it matters as the big cheese crowd is on the sell side here.Remember, we have not had a decent correction since the election. Remember, we have just seen some serious froth in the utterly stupid valuation of Snapchat and investors pushing Tesla to a higher market cap than GM and Ford.

So…now we watch the vital support areas of the popular averages. The DOW at 20,412…S&P at 2322 and the NASDAQ at 5769. If the market continues on the defensive, it will go defensive…and we are already starting to see it as money flows into utilities and big, liquid boring names like JNJ, PG and the like.

As always, if anything changes, we will let you know but so far, a sea of yuck.

And lastly, where the hell are the tax cuts and tax reform, the regulatory reform, immigration reform…? Easy to promise…tough to get done!