Large-caps definitely held up better than the rest of the market on Monday. Coming from a 50-day high, this caused the study below to trigger. It was last seen in the 9/18/12 letter. Stats are all updated.
The implication here is that when the SPX is coming off a high level and it holds up relatively well despite broad selling, it will often have further to drop. The selling in the broad market could spill over into the large caps. There’s a chance they could even play catch-up to the downside. The good news for bulls here is that the bearish inclinations have only lasted a couple of days.