The markets are showing some hesitation at their current levels, but haven't fully committed to a correction just yet. Any time that a chart breaks out of resistance, the probability of corrective action increases. We never want to make trades in anticipation of when this will happen or guess how much of a correction we will get, but we should always be prepared for when it happens. Continue to take advantage of the short-term by using weekly expirations and non-directional combos.
So far, we haven't seen a strong move lower, but we are early in the week and could see more of a definitive move later. The current market sentiment remains bullish. The next pullback will be a welcome indicator of bullish strength as we move into the end of the year. Keep an eye on support levels, especially the most recent levels broken by the markets.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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