Stocks nailed our second downside target from last Friday [see: Correction Warning.] Judging from the financial press, it was a shock to the average investor.  It’s sad that a 4.5% correction would warrant such concern. But, as I often say, that’s the world in which we’re living.

Bulls need February’s highs to hold, while bears are rooting for the algos to follow the direction offered by currencies and bonds.

Many Robin Hood traders and newbie option “investors” are no doubt wondering why they didn’t pick up a good book instead of plunging into the market. These are indeed difficult times.

continued for members…

The SPX version, like ES, has a clear path to its February highs. The biggest factor continues to be VIX, which has backtested the broken dashed TL from January 2020.

There is obviously much more upside should the TL be broken. Currencies continue to do what they’ve been doing: USDJPY threatening to break out and a 10/20 bullish cross… …and DXY’s continuing meltdown courtesy of…. …EURUSD.

Gold and silver are still threatening a breakdown.

While, oil got the bounce we expected and RBOB is still under pressure.

Bonds are stili on track.

I expect ES and SPX will backtest their Feb highs: 3397 for ES and 3393 for SPX. Anything below that, and the .886s come into view. Our longer term charts offer some potential targets.I know I wasn’t supposed to post today, but things worked out for this quick update. I’ll hopefully be able to catch up on more things over the long weekend.

GLTA.