Sellers won the day, but volume ended lower on the session. Volume on the S&P 500 and NASDAQ Composite indexes were lower according to Bloomberg. The heavy losses were a blemish and gives the impression buyers were either asleep at the wheel or just not willing to step up and stem the market losses. Big banks led by JPM had a tough day as they continue to struggle despite this most recent confirmed rally. Crude oil fell nearly 7% as the April contract began to trade. The last 15 minutes of trade saw sellers pile on rushing to dump at the close with the NASDAQ going out at the lows of the session. Not the most bullish close. We still have a high level of cash and continue to see a lack of buying opportunities. The further we progress the more short setups we continue to come across. Stick with the process.
There are a lot of pundits putting targets on this market. Goldman has an Elliot Wave theory predicting this market is heading to new highs to 2250. Another Elliot Waver predicting this rally only has tops 2019 until we head lower. At this point it is truly anyone’s guess where this market is going to head. Given the lack of leadership and more stocks presenting shorting opportunities we do not have the confidence in this market uptrend. Our opinion really means nothing, but the odds are against this market pushing higher. We need odds in our favor and we certainly do not want to swim upstream.
Stick to the basics and avoid trying to be a hero.
