End Of Day Post

The markets hesitated after an exhausting first part of the week. We have seen our fair share of volatility, but we still haven't seen much directional follow through. This week, the overall tone is still bearish; however, yesterday's hammer candle put a strong stop to the current bear move. This is not to say that we won't see more selling, but a close above the 200 MA on the S&P is a strong sign of support.

The VIX also pulled back below both its 50 MA and 200 MA, but is still hovering around 13.50 (well above its all-time lows). For now, it looks like the markets have avoided a pretty large sell-off, although the week isn't over quite yet. After yesterday and today's action, we didn't get to see many opportunities to the downside, but tomorrow could give us another chance.

Stay patient in the morning tomorrow (Friday). We know that the markets can retrace directions quickly. If we open higher tomorrow, then we could see some selling come in later in the day. Wait for confirmation and pick your spots when they confirm.

Mid-Week Outlook

• Bullish: 6%
• Sideways: 14%
• Bearish: 80%

Have a great night,

The Maverick Trading Team