Tuesday, October 14, 2014

1860 or 1960 or both?

The last 2 trading days have seen humongous BOW. Based on history of that, I'd expect SPX 1960 to hold for a few days and likely a small bounce. Monday morning wasn't real decisive but broke 1905 and reached my initial 1850-1875 target in 1 day. Max option pain for Friday is near 1970 and dropping. I think the most likely scenario is an OPEX runaway small bounce and lower low near 1960 Thu/Fri. There is still a reasonable chance for a 4-day 80pt rally near 1960 for OPEX and perhaps even a slim shot for both to occur. Be careful. Good fortune.

1 comment:

  1. Possible of course but 1960 would mean getting through tremendous resistance such as 1900 (200 day) and 1928 gap. Not likely. 1900-1925 possible at best I believe. Great work. Thanks for your time.

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