The markets made a big move lower on Monday with continued worries overseas. Greece kept its banks closed on Monday, as worries of a default becomes more of a reality, causing a large down move in the U.S. markets. This was definitely a reactionary move in the U.S. markets; however, it was enough to push us below support levels in all three majors.
Today, we didn't see any continuation of yesterday's move lower. Monday's volume was also average, leading us to believe that there could be a bullish answer to this move over the next couple of days. We do have a shortened holiday week, but jumping in bearish positions here doesn't give us any real advantage, even with continued weakness.
We will see how the U.S. markets deal with this news over the next couple of days. Even a small rally could be advantageous to new bearish positions here, while at the same time seeing if the bulls have an answer to Monday's move. Stay patient with entering new positions here and remember that high volatility can skew option prices. It is better to let the markets settle a bit before entering trades.
Have a great night,
The Maverick Trading Team
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