The markets continued to move higher, but at a much slower pace. We did expect the markets to slow down as they moved into resistance; however, the last two days also left us with longer lower shadows. We could interpret this as increasing bearish presence, making it difficult for the markets to move higher, a sign of a topping market.
Sentiment is still bullish as we slowly approach market resistance. Look for horizontal and diagonal spreads to take advantage of bullish consolidation. The NASDAQ has been the strongest of the three majors and could be a good place to look for more directional bullish candidates.
As always, stay balanced and properly exposed to your outlook.
Have a great night,
Your Maverick Trading Team
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