A reversal day often marks the short-term bottom. Now we watch tomorrow to see if the new 52-week lows drop down to a harmless level.

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Feeling a little bit better about stocks? I am hoping that we see market consolidation in this sideways range. The consolidation could last for a number of months. My guess is that before the market can challenge for new highs, it needs to re-test the 2600 level.

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There was no flight into gold stocks during this market sell off. I don't really know why, but I think it may be because of the weak M2 growth rate. I am open to other explanations.

Of the 45 ETFs I monitor each day, GDX was the weakest today.

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The challenge now is to figure out what the best performing sectors will be over the next few months. At the moment, I honestly don't know. But here are some candidates.

The China large-caps didn't even touch the 50-day average. Very bullish.

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Large cap US retailers, also looking very strong.

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Biotech retraced to the break out level, and then hung in there quite well. Bullish looking to me.

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Home Construction could be a broken chart, maybe done in by the higher long-term interest rates? I am avoiding this group.

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Emerging market stocks look healthy.

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Outlook Summary:

Higher inflation and higher rates are now a headwind for US stocks.

The long-term outlook is positive.
The medium-term trend is down.
The short-term trend is down.