Hi Shoppers,

I am seeing several bearish signals in the S&P 500 futures.

First, we have a possible bearish engulfing candle on the daily chart created by Tuesday's action.

A bearish engulfing candle occurs at the top of an uptrend and signals a change in trend. Of course, we need confirmation on Wednesday with the futures trading lower.

Second, the futures traded below my $7,171.75 support intraday but managed to close right on it.

Third, we have a bearish divergence on the Relative Strength Index. That means as the futures were making higher highs and higher lows, the RSI was trending lower, showing less strength.

If we begin to sell off, support sits at $7,123.25, and below there at $7,023.50.

Also keep your eye on the bonds. The stock market has been trading in the same direction as bond moves.

The two have been historically negatively correlated but have become positively correlated as of late.

Speaking of bonds and the stock market, how is your portfolio balanced?

Remember they always told us 60 percent stocks and 40 percent bonds was the perfect combination to carry.

Well, that just doesn't apply anymore.

And lucky for you (and me), our own Hans Albrecht is going to set us up with the proper portfolio we should all be carrying.

If you missed Tuesday's session, catch it here.

Be sure to be there live on Wednesday at 1:00 ET as he explains this new approach.

Thank You For Reading. See You Next Tuesday,

Licia Leslie