End Of Day Post

The markets retraced for a second day in a row, but a move like this is to be expected at these levels. Last week’s bullish surge carried over into the first part of this week. With Tuesday’s doji candlestick pattern, along with markets finding themselves back into their respective ranges, a pullback was imminent.

Even with today’s close and continued weakness, all three majors would need a substantial move lower to retest support levels. Nothing has really changed to the overall trend of the major markets, but bullish and bearish opportunities continue to present themselves.

Continue to use weekly expiration cycles when available. If you are looking longer term, then make sure that you allow room for your positions to absorb price corrections.

Earnings season is coming up in the next week or so, so make sure to start checking for earnings dates on potential candidates.

Mid-Week Outlook

Bullish: 8%
Sideways: 57%
Bearish: 35%

Have a great night,

The Maverick Trading Team