The markets hesitated today after a strong bounce on Monday. In light of the devastating terrorist attack overseas, the markets showed resilience and rallied on Monday’s session. The markets had already been moving lower previous to the terrible event and could have been due for a bounce, although today’s candlestick looks to have put a temporary halt on this recent bullish push.
The U.S. markets have been experiencing their first "real" pullback over the last couple of weeks since climbing back into previous highs set earlier this year. This pullback has been a little more aggressive than we anticipated. However, in comparison to the bullish surge off the bottom, it is pretty much in line. Technically, we are in the middle of a possible higher pivot low being formed, with tomorrow's candle being the last needed piece of confirmation.
So far, the markets are acting as discussed in Sunday’s Trading Room, with high volatility Monday and indecision today. Where the markets go from here will be a strong indication to overall sentiment.
Have a great night,
Maverick Trading
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