All three majors made another step lower today; however, we are still seeing consolidation overall. We have seen some volatile moves since Wednesday of last week, but the markets haven’t gained or lost any ground. Volume has stayed pretty much average as the bulls and bears look to be testing each other with little follow-through.
Volatility has been a little higher than expected over the last few days, but we are still moving sideways as a whole. Continue to keep this outlook until we confirm a move outside of the markets' current ranges. Look to take advantage of range-bound stocks if opportunities present themselves, but make sure to keep yourself adjustable. By using weekly expiration cycles and not over committing to any one direction for too long, we should be able to take advantage of continuing sideways markets.
There is not much going on in the headlines as of late. We did see a small drop in the NFIB small business index, but didn’t notice any significant market action associated with it. We still have the PPI and retail sales due out Friday, along with the weekly jobless claims number on Thursday. At this point, we can't be sure if any of these numbers will have an impact on the markets, but we should stay mindful of them regardless.
Have a great night,
Maverick Trading
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