This action isn't anything new for these markets, and we have seen it many times before, as we now look to the FOMC announcement tomorrow (Wednesday).
Even with today's move, we are still in the lower part of the range in both the INDU and S&P. We could see continued weakness with an unfavorable report tomorrow. Our outlook hasn't changed, as we have seen tests of support before but have yet to see any conviction through it. Until we get the confirmation that we need, we will continue to take the shorter-term opportunities as they present themselves.
Continue to focus on relative strength and weakness, exploiting the weekly options when available. Make a note of options expiration this week, and follow your plans accordingly.
See you tomorrow,
Maverick Trading
