Good Tuesday morning. Following a rough start to the month, August finished with gains across the board for our major averages, with the Dow Jones hitting another ATH on Friday and the S&P 500 clinching its fourth straight month of gains.

As we’ve covered over the last week, the VRA System sits at 10/12 screens bullish, a slight downtick from our ATH readings of 11/12. The reasons for the downtick are three-fold; Market leadership has degraded slightly, with the semis/tech having led lower beginning in mid-July. Two, seasonality is turning negative as we enter September and three, the markets have come a long way in a short period of time (from the 8/5 lows).

As we start trading today, based on VRA System readings, both the S&P 500 and Dow Jones have hit heavily overbought readings. What’s interesting however is that both the nasdaq (we own TQQQ) and semis (we own SOXL) have worked off their overbought readings and are actually nearing oversold readings. 

VRA Bottom Li...