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Stocks were mainly lower today, as we saw risk-off take hold of several asset classes. The AUDJPY is traded lower by more than 1% and below a critical level of technical support.

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The S&P 500 has been trailing this currency pair by around ten days, and my thought is that it will follow that risk-asset lower to about 4450 over the next couple of weeks.

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Additionally, the 10-yr has failed at resistance again around 1.63%. I think we are heading back to that that 1.5% area of the 10-Yr (IEF).

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Meanwhile, oil prices are down more than 3% now and appear to be heading to that $76 area we have been talking about.

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Also, copper is struggling and down around 3.5%, and is challenging critical support around $4.29, and could fall back to $4.09.

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Finally, financial conditions tightened this past week, as we expect to happen as the market begins to price in rate hikes and the effects of the stronger dollar take hold.

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We also have the challenges of a higher market valuation and growth rates, which are now falling dramatically.

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All of this is precisely how we have been laying it out since the late spring. Slowing growth, Fed tapering, a stronger dollar, and now tightening financial conditions. Now we have to wait for the stock market to realize it.