The markets turned south today after another failed rally. We didn't get any follow-through from Friday's big move up, as Monday could not sustain a bullish direction. With the formation of a doji candle, along with today's bear move, it is safe to say that the markets will probably stay weak in the shorter term.
Earnings results will continue to post over the next week or so, but the market's focus is primarily on energy and overseas news. The U.S. markets have struggled to gain economic stability over the last couple of years and have done pretty good to this point; however, falling energy and overseas weakness is starting to take its toll. We have also seen some U.S. economic reports weaken over the last month or so.
Technically, we are showing very little participation from the bulls – and have been for some time. Volatility did drop over the last few days; however, there is very little buying in the markets. We should expect more weakness and don't be surprised if the volatility comes back in.
Have a good night,
Maverick Trading
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