March 1st: An odd title for a stock market update in mid-April but in reviewing the charts to compose an update or weekly outlook for the market, I kept coming back to the same conclusion; Not a thing has changed in the charts or my expectation for where the US stock market is headed since the very day it peaked (March 1st). Although more downside is needed to reach the commonly used definition of “a 10% drop from the highs”, by nearly every metric that I monitor, the correction not only appears to be underway since then, with the small caps (IWM) falling as much as 6% so far off their March 1st highs, the large caps (both SPY & DIA) down nearly 4% since their respective all-time highs on March 1st and now recently the “Technology + AMZN” top-heavy Nasdaq 100 & Nasdaq Composite starting to roll over, but still in the early stages & quite likely, on the precipice of a waterfall-type selloff that has the potential to wipe out many weeks & even months of gains in mere days.
The key support levels, price targets, trend lines, etc.. covered in that video are still the same key technical levels that I’m watching today with several of the more significant supports & trend lines having been taken out since then, further reinforcing the near-term to intermediate-term bearish outlook for the stock market. I plan to follow up with additional charts & commentary tomorrow. I’ve also updated all six charts under the Live Charts Links section located on the sidebar on the right side of the home page today as well.
The video above begins with an overview of the U.S. equity markets via IWM, QQQ & SPY. The outlook for the semiconductor sector starts around the 12:40 mark followed by the outlook for the financial sector at the 13:22 mark. The video concludes with a brief review on two of the recent trade ideas highlighted on the site, USRM & FIT.