Fresh Lows For The Week
Sellers came into the SPZ pit this morning and drove prices lower than Wednesday’s low of 1515.50. Today’s session low is 1513.50.
Locals have been the dominant directional players at this time, while the dealer community has been sporadic. One thing that has not been sporadic is the net selling all over the place from hedge funds. Every time the market looks to collect itself and move higher, players come in and unload size trades to push us lower.
Moving forward, I think the market will move sideways between 1520-1514 until the afternoon. I do expect some fireworks in the final hour, and my gut tells me its lower. Any settle below 1500 is flat our negative and bearish in the short term. My opinion is this: sell rallies. I think next week will lead us lower in the early part until a turnaround rally for option expiration starting either Tuesday afternoon or Wednesday afternoon. One thing to note. I have seen too much complacency from the bulls during this decline. We need some vicious selling before we’ll get the enough shorts in the market to prepare for a rally.