3 months of advances on SPX was erased in 13 sessions, or 3 weeks.
They say it’s a sign of a bull market – small steady advances and quick vicious sell-offs.
There hasn’t been a whole lot of institutional buying so far.
As predicted, I’m tempted to hold SPY puts over the weekend, but last 12 Mondays in a row were UP days. What to do, what to do…
1,050 on $SPX or thereabouts is a very logical support zone – 34ema and 50ema on the weekly are around there, and stochastics are getting close to oversold finally… Curiously, the top box stochastics – long-term – haven’t moved much.
Around that level, or $105 on SPY, I will sell my SPY puts and will add to the calls. Once it gets to $105, it’ll be tempting to hold to $103, but that’s just greedy.
Ah, finally – buying on weakness showed up. Approximately $400MM on SPY alone today. Bounce time! (imvho, dyodd blah blah)
Within 1-3 days.
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