All three majors gapped higher today, but didn't move much higher from there. The 2017 trading year started out strong, as all markets gapped up from last week's/year's close, moving back into higher basing ranges.
Today's volume almost doubled the prior five trading day's average. This was to be expected after the extended holiday season. With only one trading day posted in 2017, it becomes very difficult to make a decision on market direction. However, today's gap higher does take away from a straight move lower based on last week's move. This isn't to say that we don't move lower from here, but take into consideration the comparative volume...if we don't see at least that amount on the next push lower, then we shouldn't put much faith in it.
We just started the week/year, so stay patient and let's see where we go from here.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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