Running of the bulls on Wall Street as they head for slaughter. Tough day as SPX closes below its 200 dma. Techs are in trouble, thanks to CSCO.
ES has very strong confluence support at 1462, weekly S2 and 61.8% Aug/Oct. Keep in mind this type of action the week before option expiration week often sets up rallies, but the heat might be too much for the average trader. Nevertheless, buying puts now might be too late in the game. Any move lower tomorrow would be a good opportunity to sell some OTM bull put spreads. The vol. is just too expensive for outright long calls.
Funny how all those calling for SPX 1600 are suddenly very quiet. Just like the $100 oil crowd will soon be.
This entry was posted
on Wednesday, November 07, 2007 at 11/07/2007 06:12:00 PM.
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