The markets closed flat on today’s session after a very bearish Monday. Today started to the bull side and looked like we could see an oversold bounce, but the bulls couldn’t gain any ground. All three majors are still slightly above major support levels, but threatening nonetheless.
We are still seeing strong bearishness in the markets here. There is still weakness coming out of China, but this move has had its own life/agenda for some time now. With an impending rate announcement that can come at any time through this year, we should stay to the bear side of things. Once action has been taken, we will need to see its reaction. Until then, it's best to error to the bear side.
Don’t try to guess bottoms. We are very close to major support levels and expect them to be tested a few times over the next few days. Continue to react slowly to major moves, and make sure to add a bull or two if you find yourself over-exposed to the bear side.
Have a great night,
Maverick Trading
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