The markets hesitated today after threatening resistance levels on Monday. We have seen a decent move higher from the low set two Fridays ago (before the holiday weekend). Most of this bullish move was fueled by a relief bounce in energy last week, although we aren't seeing much follow-through so far.
Volume has steadily been decreasing during this bullish move, even though resistance levels are being threatened. Until we see the markets push through resistance with an increase in volume and sustain itself above it, we will still need to stay cautious in our outlook.
Technically, our outlook is still cautious to slightly bearish here. However, it could be safe to say that we have seen a bottom in these markets, at least in the near term. As always, stay balanced and adjustable until we see more conviction in market direction.
Have a great night,
Maverick Trading
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