The markets moved higher today after putting in a decent reversal signal on Monday. We continued to see volatility in these markets, along with a decent amount of volume, as all three majors put in a hammer candle on support. Even though the S&P gained just over 1% today, we did close off of the intra-day highs. The S&P is off of its previous support level, but still below its moving averages.
Tomorrow brings us another FOMC statement. As always, we should expect some volatility like we have seen over the last two days, regardless if action is taken or not. Continue to stay balanced – our outlook is still sideways through the end of the year. However, we have been getting the move back into consolidation levels as discussed in Sunday's weekly Trading Room.
Keep an eye on the market reaction to tomorrow’s event, or lack of it. In either case, take your time and be slow to make any major adjustments to your portfolio or positions. Once the volatility calms down, you will have an easier time making adjustments. Look to add positions or make changes later in the day tomorrow or even later in the week, if so desired.
Have a great night,
Maverick Trading
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