Lower support levels held as the markets continued higher from last week. The S&P broke below its 2,080 support level last week, but bounced off of 2,050, and is still moving higher. Although the last few days have been bullish, we are now retesting minor resistance levels set back on June 11th. Volume is still on the lighter side, but the movement is definitely bullish, as we have seen a decent drop in the VIX over the last couple of trading days.
We need to stay cautious as this could still be a very large bear rally to this point. We haven’t seen an answer from the bears yet, but expect one later this week. Entering new trades here will be difficult with July monthly expiration coming up, along with the amount of volatility that we have seen in the markets the last few days. Consider staying balanced if you are going to enter longer-term positions here. Trying to gauge shorter-term direction will prove difficult until the week progresses.
Another earnings season is upon us, so make sure to keep track of earnings dates and/or earnings results of any stocks on your watch lists. Earnings results can create sector rotation, so keep an eye on sector performance over the next few weeks.
Have a great night,
The Maverick Trading Team
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