The markets closed above resistance levels today, but volume still remained light. Today's move makes a strong case that this bearish trend could be ending; however, we would like to see volume pick up if this bull move continues.
Both the S&P and INDU closed above their 50-day moving averages, along with exceeding resistance levels. These are both bullish signs, but we don't expect a straight run to the top from here – that is, if the markets continue to moving higher. Look to longer term verticals or diagonal spreads on the bull side, we could consolidate for a bit before making another push higher.
Be aware of the next levels of resistance in the markets. If we continue higher, then we will most definitely have to sit through a pullback at some point. Continue to take advantage of trades in both directions – relative strength and weakness has been pretty consistent as of late. As always, stay balanced and adjustable.
Have a great night,
The Maverick Trading Team
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