A Change Is Going To Come

The theme heading into this week, an early option expiration and tax day (oh joy) is change.

For the first time since the mid-February rally began, we’ve had about 3 weeks of range.  Perhaps this is a time-based correction, the worst kind of correction, one that quells volatility.  But it looks like, according to the tea leaves, we will be testing the low end of our range these next five days.

It is hard to bet against the market in these conditions, but last week the rotations became more fluid for sellers.  As much as I want to take a firm bearish stance, I need to see the sellers become more aggressive, and globex volatility kick back in.

See also: A Decline Has Begun and Should Accelerate This Week

For now, I am cautiously bearish and looking for clues before becoming heavily active with shorts.

Members of Exodus, the latest Strategy Session has been published. Be sure to check it out.