The S&P and INDU closed flat on the session, regaining the majority of today's earlier losses. The Nasdaq posted a small gain today, which was enough to let it close above 5,100. Overall, we are still seeing a base form in the markets as directional opportunities are becoming scarce.
Technically, all three major markets are showing signs of basing, but in three very different ways. The S&P is creating a high base, but the INDU is forming more of a small pullback. The Nasdaq looks to still have a little bullish momentum (most likely driven by earnings) and continues to float higher.
Earnings have been mixed so far. We will see some of the bigger companies over the next week or so, starting with AAPL tonight. So far, the markets have absorbed both good and bad news, but that could change as more and more companies report. The FOMC announcement on Wednesday could shake things up; however, the markets are expecting no change in policy to be made.
Shorter-term sideways to bullish is still the play here. The more the markets base, the stronger the move out should be. Keep an eye on earnings results.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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