The markets made a strong move higher today, as all three majors closed on the highs of the session. Bounces are usually expected after moves like we have seen over the last couple of days. However, when it's associated with good volume and a drop in the VIX, it could be something more.
Today left us with a marubozu candle formation. Today's candle formation also includes a small gap to the upside, about 1/4 the way up yesterday's candlesticks on both the S&P and INDU. We should see some continuation from this pattern at least part of the day tomorrow, as the markets will now test previous support as resistance.
Outside of the Brexit's impact on the U.S. markets, the U.S. economy continues to stay stable. We don't want to guess a bottom in these markets, but if they can get back above major support levels, then we could see some buying opportunity later this week.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Over the years, we have spent thousands of hours talking with our traders and answering their emails. We have a huge collection of really great information that only benefited the specific traders who we were interacting with. So, we decided to start sharing all of these gems of knowledge with everyone.
