The S&P recovered the majority of its losses and the Nasdaq edged out a small gain. The INDU closed down over 0.5%, but it also managed to recover most of its losses. We have seen some corrective action over the last few sessions, as all three majors have moved back into their respective ranges.
With a high base breakout comes a retest of previous resistance. This has been the case for the markets this week. Over the last two days, we have seen the markets move lower. However, both days closed well off the lows of the session. This leaves us with hammer candles, showing signs of reluctance in bearish conviction.
We are still in a bullish trend here. The last few days should not be seen as anything more than a retest of support (so far). We will have an FOMC announcement tomorrow midday, which can always have an impact on sentiment. Keep to your current outlook until the markets tell us otherwise.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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