The markets made a remarkable recovery today after being down over 1% mid-session. The S&P temporarily broke its 200-day simple moving average for the first time since October 2014. The Dow and Nasdaq hit their lowest intra-day prices since February and May, respectively.
Eurozone officials are saying that Greece "might" submit a new aid proposal to European creditors tomorrow (Wednesday). However, any new proposal is not likely to differ significantly from prior proposals, which could add more hesitation in the markets. As price action is often an indicator of "yet to be released news," we believe that Greece and the eurozone took a major step toward a resolution today.
We will watch closely how the U.S. markets continue to deal with the uncertainty surrounding Greece. Expanded range bullish candle reversal patterns have been found at many of the important bottoming points in the broad markets over the past few years. So, today's reversal should be respected at a minimum, if not acted upon!
When a big expanded range candle forms, the next day is usually a harami (inside day). So, tomorrow may give an opportunity to buy on a very minor intra-day dip if you didn't already pounce on the bullish reversal in today's session.
Have a great night,
The Maverick Trading Team
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