Market bearishness continued as both the S&P and Nasdaq broke lower support levels. There isn't much out there to rally these markets and we are seeing very little buying off of the lows. This continued market action could create over-extension to the downside. If this continues, then we will probably need a bear rally before we will see new opportunities to enter bearish trades.
Economic reports are light this week; however, Janet Yellen is scheduled to give testimony tomorrow. We aren't expecting much out of the testimony, but keep an eye on it just in case we see the markets react. Stay patient and let your bear trades work for you. We might see a bullish move or two, but at these levels, we can't expect it to be anything more than a bear rally.
Have a great night,
Maverick Trading
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