Same Story, Different Day with Update at 9:35 AM CDT
The market wants to rally to the S&P 2722 to 2778 area, but has no reason, first stop on this dream is 2576.
The Main Takeaway
I would suggest that readers go back and look at:
The March 27th post, ” A Worst Case Scenario” and
The March 30th post, “The S&P 3000 Dream”
It is Dangerous out there to say the least and maybe a little diversification in terms of active trades is in line. By diversification, we mean keep in mind that stocks are generally headed lower, gold is generally headed higher, and the real outside the box thought, bonds are going to be the biggest downside surprise as the year unfold.
UPDATE this morning the S&P has shown an ability to ratchet up its short term trading range to the 2535 to 2722 area. We will trade accordingly, long term objectives have not changed.
Further Update at 11:15 AM CDT I check in periodically with a technical analyst who uses tools to further hone in on key trade levels. He at the moment is looking for the sweet spot to sell the S&P to be 2683, a little short of the general 2722 level we have cited before. Of further interest, Wednesday of this week is indicated as a probable high volatility day.