S&P continues to walk the tightrope

Call it THE line in the sand...call it a battlefield...call it a tightrope...call it whatever you want, the bulls and bears of the broad market are fighting it out around, over, under, and ON the 50day moving average! And the bloody battle has been raging for 9 consecutive trading days. The problem is, neither wants to admit defeat.

As a technical analyst, it appears we are in a midst of a minor correction within a larger bull market. That means, as recently mentioned, there should be another leg down with the most logical area of that leg concluding around the 38% Fibonacci retracement level and previous reaction low from early March near 1330. What will happen is anyones guess but eventually something has to give, and if you are like me then you are looking for downside protection in the form of covered calls, puts, vix, or cash.

With expiration over and earnings season getting info full swing, expect next week to bring some fireworks. Until then, enjoy the weekend.