The markets have started the month of September in true, historical fashion. September is typically a more volatile month and can be a down month as well. The S&P 500 (SPY  ) has started true to its history, trading lower so far in the first week. The SPY has fallen just under 1% as trade issues, and a tech selloff hits the broad index. Traders are quick to note that this is only a mild decline so far but that the volume is picking up little by little.

The Nasdaq 100 (QQQ  ) has seen the bulk of the selling pressure so far this week thanks to a broad selloff in tech names. On Wednesday alone the QQQ fell over 1.25% with volume at its highest level in over two weeks. Though the trend is still higher overall, many are beginning to question if this tech selloff is just the tip of the iceberg, or if this is just a mild, profit taking pullback.

One hint that investors are thinking that it's time to play defense a little is the Consumer Staples sector (XLP  ). On Wednesday many of the consumer staples names like Altria Group (MO  ) and Kimberly Clark (KMB  ) helped support the 1.15% rally in the XLP. Technical traders note the support of the 200 day moving average as a critical clue that money is moving into this space.

Crude Oil (USO  ) and Energy (XLE  ) have seen some downside pressure as well thanks to trade concerns and reports that the production out of the Permian basin is slowing. This sent shares of the producers and explorers (XOP  ) lower on the week as well. Crude oil has had a nice recovery off the 200 day moving average recently and many traders are content to see a small pullback in the short term.

Lastly, Volatility (VXX  ). The volatility index has started a slow move higher this week as many know about the historical increase in volatility for the month of September. Though investors have not become fearful, you can see a small hint of protection in the popular fear index.