Nasdaq 100 tested 50 day moving average.

Isolating strong stocks when the market is weakest is a very simple idea that works. When most everything in the market is getting trashed, look for the stocks that refuse to go down. There has to be a reason for it. When the market resolves itself back to the upside, these are the names that will potentially become the strongest stocks very quickly.

First, overall breath has improved enough and there are some buy set ups showing up.
I see 50 day test across the board.
Second, remember, any significant selling here would change the picture quickly.
Third, go day by day and stay flexible and focused on your plan and execution.

Looking at the week ahead.

Stay alert and patient here as the market is chewing and spiting lots of traders now. For the week ahead just stay patient and focused on risk control if you are going to get engaged. Studies suggesting higher than normal volatility to continue.

Trading range.

I am impressed with the market this week as yesterday morning it squeezed out the shorts at the open and this morning is scared out the nervous longs. Those who are trading are chasing which adds scale to these swings.

Turnaround Tuesday.

Today we had a powerful rally and a first step necessary to provide a clue that the lows have some chance of holding. As we always do in these reversals, we will need to see additional follow through for confirmation, and we want to see robust performance in leading stocks accompanying the follow through day.