All three major US markets hesitated today, but in three different ways. The INDU was the biggest loser, giving up about -0.5% on the session. The S&P ended slightly lower, down only -0.1%. The Nasdaq actually posted a gain of +0.29%.
Due to the U.S. market holiday, we have only seen one day of trading so far this week, which doesn't give us a whole lot of new information. With that said, we should be focusing on on resistance. Don't be surprised if the markets hesitate here or even pull back a bit, as this should be expected at these levels. We could be in for some volatility this week as the S&P tests the 2,100 level.
Have a great night,
Your Maverick Trading Team
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Tuesday, May 31, 2016
Thursday, May 26, 2016
End Of Day Post
The markets hesitated today after two consecutive bullish sessions. The S&P is above previous resistance levels of 2,080. The INDU still has some ground to gain until it tests resistance of 17,950. The Nasdaq has shown great strength, blasting through its 4,800 resistance level and is now testing 4,900.
All three majors have shown some strong bullish movement this week; however, this did come from a bearish pattern. We are now back into an overall range, with respect to each market's support and resistance levels.
The bearish outlook has indeed been curbed based on this week's move; however, we do have one more session before the extended U.S. holiday weekend. We don't want to react to tomorrow's action, but instead use tomorrow's finish as a look into next week. Keep in mind the overall patterns and continue to follow relative strength and weakness in entering new positions.
Have a great night,
Your Maverick Trading Team
All three majors have shown some strong bullish movement this week; however, this did come from a bearish pattern. We are now back into an overall range, with respect to each market's support and resistance levels.
The bearish outlook has indeed been curbed based on this week's move; however, we do have one more session before the extended U.S. holiday weekend. We don't want to react to tomorrow's action, but instead use tomorrow's finish as a look into next week. Keep in mind the overall patterns and continue to follow relative strength and weakness in entering new positions.
Have a great night,
Your Maverick Trading Team
Tuesday, May 24, 2016
End Of Day Post
The markets made a strong push higher today, led by technology. The Nasdaq has been the weakest of the three majors for some time, though today it posted the largest gain of the three, closing up 2% on the session.
The Nasdaq did set a double bottom a few days ago, but this surge has pushed it through a resistance level and all its moving averages. The S&P and INDU also moved off of support levels, but have yet to push above previous resistance, respectively.
Volatility is to be expected here. We will see if the bears will let this move continue uninhibited or test it sometime this week. Continue to stay balanced as we continue to see good opportunity in both directions.
Have a great night,
Your Maverick Trading Team
The Nasdaq did set a double bottom a few days ago, but this surge has pushed it through a resistance level and all its moving averages. The S&P and INDU also moved off of support levels, but have yet to push above previous resistance, respectively.
Volatility is to be expected here. We will see if the bears will let this move continue uninhibited or test it sometime this week. Continue to stay balanced as we continue to see good opportunity in both directions.
Have a great night,
Your Maverick Trading Team
Thursday, May 19, 2016
End of Day Post
The markets moved lower today, but managed to regain the majority of their losses, closing just above major support levels. Support still managed to hold this week in light of an increasing bearish presence. Volume has been on the rise, along with volatility, but we still don't have confirmation of an overall market breakdown.
The current market action and market levels can be deceiving. These levels will be tested by the bulls and bears and could give false signals in the shorter term. Although the markets appear to be bearish and could break down, we don't want to abandon bullish opportunities. That being said, the same argument could be made for the bearish side. We might be on the cusp of a bearish correction and could see some great opportunities to the downside as well.
Enter trades based on confirmation. Be mindful of your outlook and time frame. If you follow your plan and execute according to your rules and not your emotion, then your portfolio should reflect market sentiment.
Have a great night,
Your Maverick Trading Team
The current market action and market levels can be deceiving. These levels will be tested by the bulls and bears and could give false signals in the shorter term. Although the markets appear to be bearish and could break down, we don't want to abandon bullish opportunities. That being said, the same argument could be made for the bearish side. We might be on the cusp of a bearish correction and could see some great opportunities to the downside as well.
Enter trades based on confirmation. Be mindful of your outlook and time frame. If you follow your plan and execute according to your rules and not your emotion, then your portfolio should reflect market sentiment.
Have a great night,
Your Maverick Trading Team
Tuesday, May 17, 2016
End of Day Post
Support was once again tested as the bears made another push lower today. We have seen this action before – specifically, Tuesday and Wednesday of last week, when strong selling followed a bullish surge.
Although the markets have not yet broken support, they are testing it from a lower high, which by itself can be construed as a bearish sign. Confirmation will still be needed before shifting our outlook to bearish. For now, just work on building a bearish watch list.
Have a great night,
Your Maverick Trading Team
Although the markets have not yet broken support, they are testing it from a lower high, which by itself can be construed as a bearish sign. Confirmation will still be needed before shifting our outlook to bearish. For now, just work on building a bearish watch list.
Have a great night,
Your Maverick Trading Team
Thursday, May 12, 2016
End of Day Post
The markets moved lower in the early part of today's session, looking to continue yesterday's bearish move, but recovered the majority of their losses into the close. Both the S&P and INDU climbed back into positive territory momentarily, while the Nasdaq continued to suffer, closing lower than the other two indexes.
We have seen some pushing and pulling going on this week as the markets continue to hover around support areas. Tuesday's market action showed some bullish strength coming off of support. However, it was met with a decent amount of selling on Wednesday, pushing the S&P back down from where it started.
Overall, the S&P and INDU are within their respective ranges and the Nasdaq looks to be setting a lower high. We might not see a break in support or resistance levels tomorrow, but we are looking forward to Friday's finishing candle forthe week for more info.
Have a great night,
Your Maverick Trading Team
We have seen some pushing and pulling going on this week as the markets continue to hover around support areas. Tuesday's market action showed some bullish strength coming off of support. However, it was met with a decent amount of selling on Wednesday, pushing the S&P back down from where it started.
Overall, the S&P and INDU are within their respective ranges and the Nasdaq looks to be setting a lower high. We might not see a break in support or resistance levels tomorrow, but we are looking forward to Friday's finishing candle forthe week for more info.
Have a great night,
Your Maverick Trading Team
Tuesday, May 10, 2016
End of Day Post
The markets pushed higher today, confirming a move from support levels. Today’s move was direct and strong, closing on the higher end of the day’s range. This move spanned all three majors and was accompanied with a move lower in the VIX (now below 14).
This is a strong technical move in the markets; however, since it came from previous support levels and not a higher low, we should look to previous resistance for targeting purposes in the short term.
With eight (8) trading days left until May’s expiration, there should be plenty of opportunity for horizontal and diagonal plays. Today’s move was very strong, so if you want to play something more aggressive, look to verticals into this week's end.
Have a great night,
Your Maverick Trading Team
This is a strong technical move in the markets; however, since it came from previous support levels and not a higher low, we should look to previous resistance for targeting purposes in the short term.
With eight (8) trading days left until May’s expiration, there should be plenty of opportunity for horizontal and diagonal plays. Today’s move was very strong, so if you want to play something more aggressive, look to verticals into this week's end.
Have a great night,
Your Maverick Trading Team
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