The markets continued to move lower, but we are not seeing the conviction that we would expect in breaking support levels. The markets retraced a decent amount of the day's loses going into the close. The VIX has also been steadily climbing; however, it too hit resistance, closing below its opening price.
The bears could be gathering strength here before making another push lower, but we will need more follow-through on one of these down days. Until all the speculators (or bullish bottom fishers) are out of this market, they won't be able to truly capitulate and move higher. Continue to keep a bearish outlook in the near term and don't overcommit to the longer time frames for now.
Have a great night,
Maverick Trading
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