katie stockton: it is a long-term uptrend.d of the market and you can see it and the long term moving average and i look at that 2035 period moving averages. that tends to be strong. david: let's look at the daily moving averages and we have a and athat has to under 50 today above where the numbers are and down below, it is the percentage of stocks below or above those averages. right.tockton: that is when you look at shorter term, as they have rolled over. out the 50s&p take day but has the rising 200 day and i am looking for support near the 2400. if it is not, 200 day is near 2300. it shows what could be downside risk. we have seen market ,articipation has deteriorated very normal and nothing to be concerned about what a healthy development within the broader trent --- broader of broader up trend. we look at these measures as overbought or oversold. the 10 day moving average is over -- territory and has reached a level affiliated with lows in the s&p 500 and the measure is very close. we are getting close to tradable. alix:

katie stockton over at bt ig saying that she expects the pullback that we were seeing more so earliero deepen as the week goes on. right now, that sense of risk off relative to stocks here in the u.s. fading a little bit. we do have the vix spiking higher. spiking more than 13% earlier. let's hop into the bloomberg and see what is happening on across -- cross asset space. on blue, we have the vix seeming to gyrate everywhere between 10 and 16. whitery elevated, but in and purple, we have a bond volatility index along with the currency volatility index and we see that more recently when the vix spiked higher to about 16 and then has been gyrating. both bonds in currencies have been staying relatively not very volatile, more stable and more complacent. some investors are not worried about the macro uncertainties that we are seeing out there. we do have one sector giving a nice bit off the north korean tensions. let's take a look at some of the defense stocks. you have lock in berkeley -- lockheed martin trading sharply higher as you do have money have geopolitical tensions. lockheed mar

joining us now is katie stockton, chief technical analyst at btig. katie, great to have you with us the focus today, as much as professional watchers don't focus on it, is the dow. let's go with the dow. what i've been noticing and what i lot of watchers have been noticing, a potential breakdown in the transports recently the transports down, what, 4.5%, 5%, in just the past month alone. is that a warning sign for the dow? >> i don't think so. i do think that the dow industrials are poised for a pullback but i wouldn't see it as a warning sign i know a lot of people talk about dow theory whenever you get a divergence between the transports and the industrials but i wouldn't read too much into it. the dow theory really, the tenets don't describe it as such so while the transports may exhibit down side during pullback, i don't see it as a warning signal here. >> what sort of pullback are we talking about, and are you seeing the same commensurate pullba pullback from the s&p 500? >> this would be a natural place for a pullback for both of the major indic