Since the failed breakout from last week, the S&P 500 has continued to trade a little “looser.” We’ve seen some pretty hard selloffs, gaps, failure to sustain any further upside.
Odds are, we just trade sideways… because, well that’s what recent market action has traded like.
A change in character here would be a gap fill at 2440. That means there weren’t enough buyers to accept current prices… and a retest of the lows from the large selloff is not characteristic of what we’ve seen all year.
Key resistance is 2470, support 2440. Expect more rotation and plenty of shakeouts.
Trade #1: FB
Looking for a pullback into the rising 50 day moving average.
Price Target: 163
Sell to Open FB Oct 150/145 Put Spread
Tier 1: Enter at 0.60, Exit at 0.10
Tier 2: Enter at 0.90, Exit at 0.60
Tier 3: Enter at 1.20, Exit at 0.90