All the major US stock market averages broke below their 50 Day Moving averages today. I use the 50 day MA as my correction indicator, so as far as I’m concerned, we are officially in a correction. That doesn’t mean the market has to fall off a cliff; many corrections are nothing more than sideways affairs. There is good support just below these levels for most indices, but this is a risk warning sign. If you are uncomfortably long, it’s time to take some off the table and reduce your risk. Reduce exposure and wait to see what happens. I anticipated this and raised cash in the World Allocation portfolio a couple of weeks ago to roughly 13%. For now I feel comfortable with that:

S&P 500

NASDAQ

Russell 2000