Don't like the direction the market is headed? No problem - just wait until tomorrow, 'cause it'll be pointed a different direction then. Geez, what an exercise in extreme moves and constant reversals the last few days have been, both up and down. Don't worry though, because we've got a pretty good bead on things for you. Actually, today's newsletter is just an extension of yesterday's, as the saga seems to be a daily and even intraday affair now. Our overall outlook is still the same as it has been for a while though ...after nearly a 17% runup from mid-December, we're due for a dip. And yes, I mean a dip slightly bigger than the one you've already seen. The fact is, while it feels awful, stocks have only fallen 1.5% from last week's high to Monday's low. Feels like a bigger correction than that, doesn't it? Whether it feels big or small though, a dip of that size just isn't gonna give us the proverbial 'reset' we need to restart the rally in a meaningful (read 'long-lasting') way. Anyway, I've talked to you about the different pieces of the technical puzzle in different editions over the past week or so, but today I want to bring it all together for you in one chart. It's the one nearby. On it I've plotted the NDX's 3x3 displaced moving average (or DMA), as well as the NDX's 25x5 DMA. The 3x3 line is a great indicator of new or waning momentum that I talk about all the time, while the latter - for the time being anyway - is the support level or downside target I was telling you about on the 4th. Not that there's a right way or wrong way to interpret it, but clearly last week's break under the 3x3 displaced moving average wasn't just a little volatility. We saw more bearish follow-through after moving under the DMA last week than we had in months, and the bears are even chipping away today following the initial morning bullishness. In other words, the short-term tide has already changed for the worst, which is why we've been telling you to get into puts at intraday peaks and lock in gains at intraday lows. [Just an FYI, that suggestion still applies.] So where's the NASDAQ 100 Index going to land? At this point, the landing strip is at 2697, though it rises a little each day. That's where the 25x5 DMA line is parked today. To be clear, I don't yet want to tell you the market's gonna' bounce there. It's just going to be an inflection point... a level at which we want to observe the market's action, and then make a bigger-picture decision. I will say this though - even a pullback from last week's peak of 2786 to 2697 is only a 3.2% dip. That's still not on par with a normal corrective move. Let's burn that bridge when we come to it though. For now, we're just planning on watching the market ratchet its way lower. In the meantime, a couple of tidbits you may be interested in, particularly if you're looking for the right time to get into a couple of our Featured Stocks. OREO Gearing Up For Round 2 Looks like Bryan Murphy was spot-on with his assessment of the American Liberty Petroleum Corp. (OREO) chart yesterday. He pointed out how the 50-day moving average line was acting as a support level, and sure enough, it's refused to go under that level today. The only thing I'll add is how there also seems to be a horizontal floor at $1.27 helping out with the support effort. Either way, the bulls have drawn a line in the sand, and it seems to have bought American Liberty Petroleum shares enough time to start work on a rebound move. Bryan mentioned how a ceiling at $1.50 might be a good bullish trigger, and I don't disagree. However, you may be as well served by stepping in here on the sheer strength of the floor and what's apt to be a pretty big accumulation day today. It's a little more risk, but also a little more reward. Stevia First Sweetens the Pot Again If you like the second-chance opportunity with OREO, then you're gonna love the second chance opportunity with Stevia First Corp. (STVF). Since we suggested it back on March 12th, Stevia First shares have rallied an amazing 134%. Even more amazing is how at one point they were up 245%; hope you locked in at least partial profits then. And, you're welcome. You know what's even more amazing than the size of those gains though? It's how the stock has recovered not once but twice following significant pullbacks. In other words, the bulls and buyers just keep coming back for more, using the selloffs as entry opportunities. One bounce I could chalk up to chance, but two? That's a hint that the market is really getting behind the story of stevia as a sugar substitute. There's another important detail waiting to be recognized in the nearby chart though. See the high volume associated with the March 29th pullback? Nine times out of ten you want to trade with the crowd rather than against it. In this case though, after STVF had soared nearly 150% in about a two week span, most all of the would-be sellers got off the fence and actually dumped their shares (locking in big gains in the process). It hurt that day, but look at what started to happen the very next day.... the rally resumed, this time without all the overhang of sellers. The fact that we didn't see a ton of volume yesterday when Stevia First sold off confirms my suspicion that any major sellers or overhang are now out of the way. Point being, the STVF bulls are now free to move about the cabin. That's it for today, but don't forget we've got a new Featured Stock in the queue for later this week. I don't want to spill the beans just yet, but this is a real company selling a real product right now. I think you're going to like it. Happy Tuesday.