The extend of today’s rally was a little surprising. With that said, the Indices are now extremely overbought in all three timeframes. While breadth was strong, new buyers are not being attracted to the market, as volume in the NYSE and NASDAQ continues to decline.

Month end and quarter end is Tuesday of next week. Therefore, we could see some volatility and the market moving higher as funds rebalance going into the quarter end. I am cautious of the rally. Right now, the information the market is giving us suggests a possibility of another move lower. Until that changes, use caution on long positions. The possibility of a bear trap still exists.

DAILY BRIEFING 200326 from Joe Mertes on Vimeo.