The market turned green yesterday, but only slightly. Volume was low, except on the Nasdaq, which by the way outpaced the other indices.  Technology is turning, and DDIC and NSIT will need strength

So far this year, the S&P 500 has dropped 3% or more in one session 3 different times. The two previous times, it clawed back some of the losses over the following week. We’ll have to wait and see of there is any upside after yesterday’s big drop.   

 

The S&P 500 is now testing the lows from the “flash crash” on May 6. This is interesting because it was assumed that trading that day was something of a fluke as computer trading programs went haywire. But now that stocks are back to those levels, we must consider that the drop may not have been a fluke.  

 

The question now is: can stocks find some strength? Or perhaps a better way to ask the question is: are the sellers done?   

I was trolling Bloomberg last night and I came across the following quote:  

 

“The volatility genie is out of the bottle and it will take some time to put it back…”   

 

It doesn’t really matter who said it or what they were commenting on. I initially dismissed it as one of those clichéd comments that just takes up space and doesn’t really add anything meaningful to the discussion.   

 

I mean, “volatility genie”? Come on.