End of Day Post

The markets closed higher for a second day in a row, putting an end to the current surge of selling. GDP for the second quarter was revised slightly higher than expected, and the weekly jobless claims report decreased from last week. Both of these reports are indicating that the U.S. economy is still showing signs of strength and could have contributed to today's rally.

Today's close did confirm a new pivot low in the markets. This doesn't mean it will hold or we will necessarily continue higher, but a bounce here can trigger new opportunities in both directions.

The VIX is still in dangerous territory, so we should continue to stay cautious. Technically, the last two days should be viewed as an oversold bounce and/or the start of a bear rally pattern. Overall, our longer-term outlook should stay to the bear side. We are anxious to see how Friday plays out and what pattern the market gives us going into the weekend.

Continue to wait for confirmation before entering new trades. We just established a pivot low in the markets, so there is no reason to try and guess how far this bounce will take us.

Mid-Week Outlook

• Bullish: 14%
• Sideways: 48%
• Bearish: 38%

Have a great night,

The Maverick Trading Team