Storm Clouds Not Going Away Yet

After a promising relief rally yesterday we are being reminded this morning that this market is likely still working through a corrective period. As I write this, the Dow is off by 300 points, compelling me to take gains in longs and take off a NTNX position basically flat from where I bought it. 

At issue now is whether the market completely rolls back over and effectively traps in longs who positioned for a meaningful bottom in recent trading sessions. Typically, if we lose the midpoint of yesterday's price range on a major index like the S&P 500, it could easily create enough fear to compel buyers to hit the exits rather quick, thus accentuating the selloff even more. In other words, the current 2,785 price level is a big one for the S&P, as we are trading here as I write this and it represents about the midpoint of yesterday's range.

Another concern is that stocks failed to adequately respond to the Netflix earnings pop, when they had every reason to use it as an excuse to squeeze shorts higher yet. 

Instead, the market actually seems more concerned with the HD and IBM weakness, with Home Depot wreaking havoc on the retail space today, too. 

One bright spot we continue to play and track closely would be the precious mining complex. They have quietly held onto the impressive high buy volume gains from last week. They are still suspect, overall, and have a reputation for being heart-breaker. But with storm cloud still hovering over equities, it is a step in the right direction to see gold and her miners hanging tough this morning.