End Of Day Post

The markets made a decent move lower today, led by weakness in energy and materials. The S&P and INDU both fell below their 200-day MA’s; however, both are still above major support levels for the time being. Although recent economic reports have been pretty much flat, rumors of a possible rate hike in December continue to loom. This has created some volatility in the markets and could continue to do so moving forward.

The markets have been in a pull back all week and today’s move was the largest so far. Technically, we are still in a corrective pullback, as all three majors are still above major support levels. We will see more economic data tomorrow – specifically, the PPI and retail sales, either of which could have an impact on tomorrow’s action.

Market sentiment seems to be focused on the threat of an interest rate hike or the worry of weakness moving forward. Either way, this move lower doesn’t appear to be finished just yet.

Mid-Week Outlook:

• Bull: 50%
• Sideways: 39%
• Bear: 11%

Have a great night,

Maverick Trading