All three majors closed down today. While INDU recovered from earlier losses in the day, it couldn't break its six-day losing streak and closed lower for the seventh day in a row, losing another -0.5% today. The S&P broke the 2,160 support level to close at 2,157, with over a -0.6% loss for the day and is now sitting right on its 20-day SMA. The Nasdaq was biggest loser on the day, giving up -0.9%, thus ending a multi-day uptrend.
Volatility picked up a bit as the VIX poked its head above near- and long-term resistance levels, closing at the highest level it has been in over two weeks. While we are seeing a controlled pullback in the markets, many eyes are on this Friday’s employment report (i.e., nonfarm payrolls).
Earnings season continues this week. Roughly two-thirds of the companies in the S&P 500 have reported as of last Friday. So far, 57% have reported Q2 2016 sales above the mean estimate and 71% have reported Q2 2016 earnings above the mean estimate.
See you on tomorrow’s Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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