The markets continued the same choppy pattern from last week, this time closing higher on the session. Each time the markets appear to be moving lower, we get a strong move from the bulls. This has been happening often into the closes, leaving long lower shadows and even closing positive for the day in some cases.
This week already appears to be more of the same. Monday's move lower looked to be a nice continuation of Friday's move lower and a test of support levels. Today, the markets opened higher and continued sideways through the close.
Today's action (and any further action) will most likely be caused by earnings results. We are seeing strength in some of the tech companies, which contributed to today's gap. Earnings should continue to play a role in these markets over the next week or so.
Although choppy, the markets haven't gone anywhere. Keep an eye out for upcoming earnings dates and results. Continue with a range-bound outlook until a major level is broken.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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