The markets moved lower today, but managed to regain the majority of their losses, closing just above major support levels. Support still managed to hold this week in light of an increasing bearish presence. Volume has been on the rise, along with volatility, but we still don't have confirmation of an overall market breakdown.
The current market action and market levels can be deceiving. These levels will be tested by the bulls and bears and could give false signals in the shorter term. Although the markets appear to be bearish and could break down, we don't want to abandon bullish opportunities. That being said, the same argument could be made for the bearish side. We might be on the cusp of a bearish correction and could see some great opportunities to the downside as well.
Enter trades based on confirmation. Be mindful of your outlook and time frame. If you follow your plan and execute according to your rules and not your emotion, then your portfolio should reflect market sentiment.
Have a great night,
Your Maverick Trading Team
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