This bullish move looks to be running out of steam, as we closed slightly lower on today’s session. We have seen some very small-ranged days as of late, which is an indication of slowing momentum. The S&P and INDU are above resistance levels, as the Nasdaq continues to lag behind.
We could see our first test of support over the next few days and are interested to see if it can indeed hold. We haven’t seen any great opportunities in directional trading this week; however, a market pullback should create some opportunity.
Earnings season should stir things up a bit moving forward. We will start seeing results pick up over the next couple weeks. There could be some good earnings plays out there, so make sure to research a few different ideas before jumping into an earnings play. You must have a plan for exit, whether or not you get the desired move. A ratio spread can carry a large max risk if it is not adjusted immediately after the event (check your risk graphs!).
Not much has changed since last week. Nothing really huge in the headlines.
Have a great night,
Maverick Trading
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