The market sold of at a fairly steady clip today before a bounce was attempted. There seems to be solid selling pressure into the expiration week. We will be trading the options expiring tomorrow using our most liquid assets SPY, QQQ, IWM in the Teams room as we did today.
Look at the selling pressure as shown by the new weekly lows that showed up today – 1372 more new lows than new highs.
And here it is for the last month -576 more new lows than new highs
Most senior analysts are looking for a continued selloff into the close of the week so any bounces are likely to lead to more selling
Metastock has kept us short in general for some time – but we have returned to key support that will likely bring buyers in near the base of the support ledges. The bounces can be played, but they are likely to move only into resistance where more selling should return
SPY looks quite similar as well
The NQ_F that experienced buying in the early part of the day could not hold up through the pervasive selling
The RTY_F is the weakest of the group
We will look at the short put spread action that could sit in the energy sector for a bit as everyone piles into the things that work