Despite the terror attacks in Brussels stocks are able to withstand the initial onslaught of selling. Volume on the NYSE crept higher while NASDAQ volume slid nearly 5% on the session. There are still plenty of setups and it would do this market some good to consolidate under light volume. Tight price action always helps too. If stocks breakout of sound patterns during consolidation it would be a very positive sign. Even if overall volume does not rebound as long as we have positive price action and leadership this market should be fine. Stick with the trend here. No need to a guru and pick a top.
A friendly reminder this Friday is Good Friday and the market will be closed. Two more trading days left in this week and it will be interesting to see how the market reacts as Corporate Buybacks finished up today. We still want to see this market consolidate in a tight manner with more and more leadership emerging. All we can do is manage our risk through position sizing and exits. Control what is in your power. Do not worry about what you cannot control like the direction of the market.
This market is quite resilient. Today could have been a very good excuse for this market to have a big sell-off in huge volume. Even early morning futures never gave a hint at any chance of a big sell-off despite the headlines and pictures streaming from Brussels. Perhaps markets are now immune to such events or expectations Central Banks will make everything okay in the aftermath of these types of attacks. For us, it is much easier to follow price and controlling our risk rather than trying to figure out the market direction if any given scenario may present itself.
There are 6 days left of trading in the month of March. Today’s session marked only the 3rd day the Dow saw a loss in the month. Quite remarkable! Given where we were at the lows in February this rally has been impressive. Let’s see if it can continue.
