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Coming Into a Shortened Expiration Week- Jan

Though futures are trading tonight, tomorrow’s trading day is a shortened one with the markets closed tomorrow. As a result, we should gap into positions on Tuesday. One of these is the SPY strangle that we have in position for this coming week.

We do not have our regular options that expire three times a week as we normally do as we are coming into monthly options expiration week. Here is what the first two weeks of the month delivered to us

SPY-the chart is still landlocked -above 466.5 and the chart action could stretch into 472 and below 464, we could easily see 456. If the liquidation being discussed actually occurs, we could see 450. We will trade intraday ranges using strangles as long as the options are not spiked with expanded volatility, else we will have to work on directional motion

SPY
METASTOCK SHOWS SELLING PRESSURE STILL ACTIVE BUT SUPPORT LEDGES SHOW SO BOUNCING COULD EASILY SEND US RIGHT BACK TO 472

QQQ- Also landlocked, but showing support and resistance well into the 389 region with support likely to be 370-372

QQQ
METASTOCK SHOWS THE SAME SUPPORT REGIONS WITH RESISTANCE NEAR 390 AND SUPPORT NEAR 372

IWM shows buying pressure off support on the MotiveWave setups with 210 as support and 219 as resistance

IWM
METASTOCK STILL SHOWS A SHORTING FORMATION BUT WITH SUPPORT SHOWING BELOW NEAR THE REGIONS OF 210 BUT NO BREAKOUT ACTION UNTIL THE TRADERS BREACH AND HOLD 219