On May 9th (Mother’s Day) I wrote a post (What Could Happen) about my observation on where I think significant support is for the S&P 500 index – in the 1000 to 1020 range. You can go back and read that post to get an understanding of why I think it’s significant.
As I write this, the S&P Futures hit 1023 after the market close. I can’t tell you what the market will do, but if this support holds, then we will likely see a some sort of Bull bounce, but I just don’t think it will be significant and I don’t expect it to make a higher high and therefore remain below 1125 (last high).
The current Bear move is very strong and any trend lines move us lower (see the Weekly chart below). If the index should break through the 1000-1020 level, then look for another major support area at 875 – yes, you heard me 875!
Many institutional investors have been moving into bonds. For us retail options traders, Bear Call or Bear Puts are the way to profit from a strong bear market. Make sure you wait and enter on the spike. FYI – I just opened a JUN Bear Call on FCX today. This week is the last week to enter into any JUN option trades.
I wanted to title this post: “Get on Your Knees and Pray”, but I thought it might be a little too much. Let’s pray that it is.
Look for June detailed results the end of this week or this weekend. Kicked butt on the S&P again! Preliminary: Option Guru = +5.01%, S&P 500 = -5.45%
◄ Jeff ►
