The markets have moved lower over the last few days, but the volatility is still light. We did see a decent move off of support last week, although the bulls didn't stay around very long. These last few days have moved the markets lower, but not nearly as aggressively as we have seen in the past.
We would expect to see tighter daily ranges in both the S&P and Nasdaq, especially at their current levels; however, the INDU is developing a bearish pattern. So far, the bears seem to be the most active this week. We will see what the bulls have left once (or if) we retest support levels.
Earnings season is winding down, but it is not over yet. So, continue to double check earnings dates with new trades. Look for opportunities created by earnings results – relative strength and weakness should be a little easier to identify in the shorter term.
Continue to stay balanced and look to take advantage of some sideways action, especially if the markets keep moving between support and resistance levels.
Have a great night,
The Maverick Trading Team
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