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Stocks opener higher on Monday, following-through on Friday's big positive reversal day. The Dow ended the day up 410-point. That was about 140-points off the highs and it may have hit some resistance, but still quite impressive. With volatility remaining fairly high, these wide swings could continue for a while. ...

The market opened higher on Friday but it didn't take long for the bears to put the pressure on again. By about 1:30 PM ET, the Dow was 500+ points on the day, and it was looking like it could be another one of those -1000-point days for the Dow. But as the major indices started to test their 200-day EMAs we saw buyers step up and the Dow rallied into the close gaining 330-points on the day.

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Stocks officially corrected 10% off the January highs this week. The change in market character over the past two weeks has shocked investors who struggled to navigate the new magnitude in volatility that has been absent in the market for more than a year. The increase in volatility was met with a sell-off that has wiped out the gains of the fruitful month of January where we saw an increase in upward momentum from the last months of 2017.

The exact cause of the correction is debatable ...

The selling continued on Thursday with more deep losses and once again I'll say this seems to be the price the market is paying for 15 months without pullbacks and corrections, and it is now officially a correction (-10%). They happen, and many expected it, but when it comes it is still a shock to the psyche. Support levels were thin and that created a vacuum on the down side so two plus months of gains were erased in a few days. The Dow lost another 1033-points or 4.2%.

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The volatility continued Wednesday and as you see in these mini-charts, there was no lack of intraday ups and downs as the market looked for direction. The Dow was down over 200 at one point, and up over 300 so the range remains wide and that can set up decent trading opportunities. Too bad we have to act only once and it has to be 4 hours before the market closes. The Dow ended the day down just 19-points but it lost about 285 points in the final 15 minutes of trading.
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