Since early March I was preaching patience, not chasing longs, and the stock market was dangerous and needed a reset. One of the ways I defined a rest was at  least a 5% correction in the indices and we got that today in the SPX, and that threshold has been well exceeded by both the DIA and IWM ETFs. One of the other ways was a visit to the bottom of the channel bands as shown in the attached chart for SPX. So the net effect is that the minimum has been accomplished.

Let an ex-Wall Street Insider do your homework for you. Use Joe Duffy’s uncanny market analysis to spot trades again and again. Check it out here

Many, many stocks have exceeded 10% corrections. Only a very few stocks like MSFT and a few of the semiconductor stocks have held pretty steady. So while I think Thursday will show further weakness at least intraday, the time for trading the short side has been satisfied for now, and a more balanced view is in order, especially from any lower levels. Basically this means I will trade long or short, whatever I see. Definitely my preferred market environment. I also can see earnings now being a catalyst either way. So we navigated a treacherous period with patience. Opportunities should be starting to open up again soon. Stay tuned!