The markets managed to close higher, but well off the highs of the session. We did see a very strong move to the upside yesterday; however, the bulls seemed to run out of steam early this morning. While the S&P and INDU are both back above previous support levels of 2,100 and 18,000, respectively, today’s candlestick does raise some concern.
Both the INDU and S&P charts ended the day with a shooting star candle – very similar to the candles that we saw on Wednesday of last week. If this is indeed a lower high pivot point, then we could see another run back down to support levels. This will have to be confirmed with tomorrow’s action, but it could be the start of a descending triangle pattern developing.
Regardless of a move up or down tomorrow, especially with the markets at their current levels, we won’t be left with much to go on as far as sentiment. This will take multiple days in either direction before we test and/or break support or resistance levels. Continue to stay balanced and patient, taking advantage of relative strength and weakness in the shorter term.
Mid-Week Outlook
Bullish: 30%
Sideways: 55%
Bearish: 15%
Have a great night,
The Maverick Trading Team
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