Last post I said:
"The tight sideways action after the low of August 11 does not look impulsive. It may change its structure, but, right now, it looks like at least another push down may be needed to complete the declining wave set that started on August 10."
Seems I have been correct. We had a gap down in the morning. So far, Index is trying to fill the gap. There is another gap that was opened on the way down on August 12.
This week is an expiration week. The gap down at the open (I think it was the 4th on the way down), proximity of expiration Friday, oversold conditions and all sorts of doom and gloom scenarios including the Hindenburg Omen bandied about, made me think about a small bet on the long side using options.
This is what I am seeing on the 5-min frame
My long-standing level of 1070 held the gap, and as long as it does, I am good with the bet I made on the long side -- for now, a small move geared towards expiration
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago