The markets continued to show signs of bearish control since last week’s FOMC statement. Since Thursday’s Fed announcement (and decision to leave interest rates unchanged), we have seen a dominant amount of bearish action. Thursday ended up giving back all gains, followed by Friday confirming a move lower from resistance.
Technically, we are moving lower from a shooting star pattern set at resistance on Thursday. We confirmed this move on Friday and are seeing its continuation so far this week. We did finish off of the lows today, which could indicate another bullish attempt early in tomorrow’s session. However, we must wait until the close to evaluate the overall market pattern. We do expect volatility to continue as the markets try and stabilize at their next level – wherever that may be.
Make note of support and resistance levels. If these levels are broken (in either direction), then we will see opportunities present themselves. Take trades as they trigger, but keep your overall outlook and time frame in mind. Make sure to include positions for both shorter-term and longer-term to stay adjustable as sentiment changes.
Have a great night,
Maverick Trading
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