We are still waiting to see a clear signal of a market bottom, as another bullish move fails to hold its gains. Yesterday did leave us with a promising hammer candle, which was also associated with big volume. However, today's bullish move seemed to fizzle out towards the close. The bulls have yet to show a strong answer to this bearish move, as we still have not seen a close above a previous high.
We are seeing a large amount of volume at these levels. We might not see the "clean" capitulation bottom we are used to. Earnings season is right around the corner, which should add to the current volatility. Nothing much has changed over the last couple weeks, so we will continue to monitor the markets.
Keep in mind that any range bounding stocks in the short-term (sideways and diagonal) could have an advantage here if you can handle the market range. Make sure to start checking earnings dates with any new setups.
Maverick Trading
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