The long awaited pullback is clearly underway. First support for the Dow is the November 2008 low of 7449 with lower support at 7200 to 7250+-. For the Qs, first support is 29 with lower support at 28+-. My hunch is that we will make the first targets today or tomorrow, bounce into Wednesday and Thursday, and then move lower again into early next week when the markets will either retest this week's lows or move down to the lower support levels. I will buying index ETFs at the lower support levels regardless of when they are hit. The good thing about this correction if it is sharp and quick is that the next correction in April/May should be shallow by the rule of alternation.
Gold is holding up very nicely and appears to have completed an abc correction from the March 20 high. The correction may become more complex, but it appears that the March 18 low will hold. A breakout above the March high should be a good opportunity to add to positions in the GLD or DGP or initiate new positions with a stop below the March lows.
Today's action in the markets demonstrates perfectly why patience is so important, and why traders should not chase markets, but let the markets come to them.
Good trading this week.