The RUSSEL (a better reflection of the overall economy than the S&P500) broke through the 50DMA as well as the 200DMA on Friday's shortened session. Markets had broadly ignored the Delta variant all year long but now, the MU variant of COVID has reminded us that this story is not over yet. Vaccines makers can't yet say whether these will be effective against the MU variant so there is an unknown factor that markets are paying attention to... re-closing of borders and further disruption to supply chains can't be ruled out at this point. On Fri the VIX spiked 22% from a level that had remained elevated by 5 units to where it was at the pre-covid highs, an indication that not everybody was, and even more now, not convinced that markets will continue to go higher. The next 2 weeks will tell whether the dip buyers or the fundamentals dominate. The Buffett indicated has dropped 11% from its 216% highs but is still 70% above historical averages. I remain net short and haven't yet entered any new long positions.