The markets paused today after making a strong push through resistance yesterday. It takes a lot of energy for the markets to gap higher, so seeing some hesitation over the next day or two is to be expected. Yesterday's surge didn't have a catalyst attached to it, which leads us to believe it was just a bullish surge that the bears didn't want to sell.
We could be seeing the start of a bullish move here with a gap above a stubborn resistance level that the markets have been struggling with over the last two months. However, it could also be a "blow off top," which could create profit taking and, in turn, start some corrective action. Either way, we don't have enough data to go on just yet. Let's see if tomorrow gives us more to move on.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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