The markets looked to be searching for a temporary bottom this week, as today gave us a decent move higher into the close. The last two days have given us signs of a bottom...or at least an area of bearish hesitation. Since the markets broke support levels last week, we haven’t seen anything but bearish movement until today.
We have seen a decent correction in the markets since the beginning of 2016. We have also seen some catalysts to support this move lower – both economic and overseas. However, we have yet to see a bounce in these markets. Until we see the bulls step in, we can’t be sure if this is just corrective action or the beginning of something more. The next bull move should shed some light on where these markets could go next, depending on the strength of the rally.
Finding longer-term directional trades can prove difficult here. With the markets finding a temporary bottom, we don’t have much time for sideways either. This leaves us with very little opportunity in the short-term. For those of you who have bear trades on, especially as support was broken, continue to allow them to work for you and follow your plan. Pullbacks and rallies will happen, but they will also create new opportunities to trade. Stay patient and let’s see where the next move goes.
Have a good night,
Maverick Trading
Over the years, we have spent thousands of hours talking with our traders and answering their emails. We have a huge collection of really great information that only benefited the specific traders who we were interacting with. So, we decided to start sharing all of these gems of knowledge with everyone.
