The markets have moved lower over the last two days as they were looking to test support levels. The S&P closed just above its higher support of 2,170, with major support still lower (around 2,150-2,160). The INDU is also pulling back, now about halfway between its last support level and previous resistance. The Nasdaq is still in a high base, but has also seen some decent selling the last few days.
There is no confirmation to the downside here. It is important to remember that the markets will move back and forth between support and resistance levels. It can become increasingly dangerous to watch a sideways market, as predictive impulses urge us to make trades that haven't triggered yet.
Be aware of your trading...are you entering with confirmation or are you trying to predict the next move? Continue to stay on the short-term, sideways path for now.
See you on this Sunday's live Trading Room 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.
