It looks like Dow Jones Transports are ready to break down.  The first support area kicks in at 8250.  If it does com down to this level, that is a decline of almost 10 percent. In such a scenario, the S&P 500 can also fall as much.

The S&P 500 lost 0.7% this week.  More importantly, it fell below the support of the 50-day moving average.  The investment climate has been uncertain due to the heightened geopolitical risk and the somewhat less hawkish stance from the Fed.  The forward-looking nature of the monetary policy means there is practically no chance of a May rate hike.  The US 10-year yield fell 14 basis points this week.  It is currently at 2.23%.  It is the fifth consecutive weekly decline and the biggest since early last June.

Maybe it is time to shuffle your investment portfolio a little bit.  Look into your 401K account and examine if the funds need to be re-balanced.  It’s always a good idea to stay vigilant.