Bazooka:
April may be just a few sessions in but could have felt like a career for many. Indexes surged in historic fashion and perhaps that was the bottom, but let us remember nothing goes up, or down in a straight line. Days like Wednesday will remembered for decades, but I have always been taught that bottoms were a process that occurred in a steady and gradual way. Tops happen in volatile trade, so although I do not think we are out of the woods bulls have to be feeling good about themselves. This market was obviously levered to the short side, and they feasted as of late, and a lot of that was unwound yesterday. How much more needs to be covered? Were longs active Wednesday, many were likely deer in the headlights after the recent tattooing they endured. The next couple of sessions will be very telling. If we can get the recipe of more covering and big organic buying this run has legs. The MONTHLY chart of the Nasdaq below shows a bounce technically in the right area, off the 50 MONTH SMA. There is a lot of air between here and there now and let the tug of war begin. This will be a very interesting Q2 with earnings just around the corner. Will they surprise to the upside, or have the “valid” tariff and “self-inflicted” excuse to fall back on?