There She Goes: A Dark Start to a New Quarter

Much like the weather in the northeast today, bulls who were hopeful for a new start to April, the second quarter of trading, and spring in general are facing some more winter volatility and a huge Dow drop. 

That said, my concern with pressing shorts in the very near-term would be not getting swept up in a widely-watched 200-day moving average test on several indices. The Dow, for example, is only now precisely testing its 200-day since 2016. Hence, my inclination is to flatten out a bit in terms of trading exposure and assess how bulls can handle this test, if at all.

Meanwhile, gold, silver, and their miners turned in a relatively solid day, seemingly a bit under-the-radar. I view the lack of enthusiasm about this move, so far, to be a contrarian bullish sign. 

One thing seems to be indisputable: If bulls cannot step in and buy up AMZN FB GOOGL TSLA, etc., with the type of vigor we have seen many times before, it would seem to point to a more pronounced change in character considering the market is now oversold and back down to some major technical reference points.