Reality is setting in for the equity market, Dave Floyd, founder of Aspen Trading told Real Vision’s Daily Briefing.

Floyd said that he welcomed the return of market volatility and he thinks equities probably have lower to go because the market has been disconnected from economic reality for so long. He said he believes we got ahead of ourselves and the move lower today was what he was looking for. Given the move in the dollar, the S&P, NASDAQ, and precious metals, something seems to be afoot, he said, and he thinks there will be lots of great trading opportunities in the days to come.

Floyd talked about the potential for a significant shift in momentum and said we could see continued selling. He said this market feels eerily similar to 1999-2000, when suddenly everyone got their head handed to them, and he wants to play that momentum.

He believes it is not just the numbers but the narrative that is shifting, as negative narratives are emerging on companies that were darlings just a month ago. The next level down he’s looking at for major resistance on the downside is 3200, he said.

Floyd also talked about the USD JPY chart and said from a tactical perspective he saw some upside—not a big play, but he’s watching it. He thinks the euro could be putting in a top but dollar/yen seemed like a better bet from a timing perspective.

He’s glad to see volatility back in currency markets and said it would be nice to continue to see it. Given the lack of volatility in the fixed income market, Floyd said it is logical for some of it to slip into the FX market, so “we’ll go swing our bats over there for a little bit.”

Floyd remains bullish on precious metals despite the selloff in gold and silver, which he said is due in part to everyone crowding into that trade. Technically, he sees support for silver around the $21 level. He’s bullish on silver and thinks it will be the better performer than gold. If silver gets below $20, he will reevaluate his thesis.