The markets are starting to tighten their ranges, especially over the last few sessions. The high base patterns in both the S&P and INDU haven't moved too far off the mark in the last few weeks. The S&P is consolidating just above its previous resistance levels, while the INDU is forming a base just below its resistance.
The markets could be building strength here, although finding a catalyst strong enough to move them outside of their ranges has proven difficult. There are plenty of things that "could" create a market move. However, we haven't seen anything to shake these markets yet. There is always the next interest rate policy...and the next...and the next.
It is probably best to keep a sideways and short-term outlook until we see some real movement.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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