The markets closed down today; however, more significantly, they closed near the lows of the day. We haven't seen a candle like today's candle since late December 2016. Today's candle followed a strong surge and gap higher in the markets. We could be seeing the first signs of exhaustion here. As always, tomorrow's candle will tell us more.
We may be seeing the beginning of a correction. If this is the case, then we need to treat it simply as a correction and not necessarily something more nefarious. There are many different points where the markets could correct to or consolidate on.
Look to adding sideways positions in the short term, but don't give up your longer-term bullish outlook. Sideways positions should help if the markets correct strong or simply consolidate.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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