Earnings and Expiration Uncertainty

The US market sold off on Monday exactly how I predicted it to on Sunday ahead of the earnings season. This week is also turning out to be as volatile and uncertain as I predicted ahead of the April expiration. The better than expected business inventories numbers failed to significantly turn the tide around and left bond yields lower across the board as investors continue to flee for safety and total equities put call ratio remains in the uncertain zone. All of these occurring during this period where the S&P500 is in yet another congestion zone makes for very uncertain short term trading. However, in the slightly longer term, its not hard to see the bullish inclination in the market due to the bullish intermediate and primary trend. As such, this may also be the best time to start strategically prepositioning for a breakout.

For now, the US market remains in short term neutral trend within an intermediate and primary bull trend.