UPDATE 10:17am EDT: Of course we got our traditional early morning gap. I have completely dropped my caffeine habit in exchange of valium by now as this is enough of an ergogenic effect for me.
I have changed my mind a little bit on the inflection point for Soylent Green – pushing it to 905 as I should give Soylent Blue a bit more leeway.
Could this be a break of that bearish wedge? I’m not falling for that little Gold tease just yet though – let’s wait for a retest which we usually get. Going short here right after a 20 point drop is usually bad medicine.
UPDATE 11:11am EDT: Here are the hourly ES short RLs for you:
Click on the image to get to the actual calculator.
UPDATE 11:25am EDT: Call me crazy but I actually reloaded my SPY/QQQQ bear debit spreads here as there is little additional risk until we breach 905.
UPDATE 12:18pm EDT: Just returned from breakfast and am surprised to still see the tape so high frankly. Let’s remember that the Monday after OPEX is the busiest day of the cycle, so seeing so little participation in combination with a gap/spike up smells like a rat to me. Good chance those Red bull sucking GS XBox addicts are trying to paint the tape. I don’t like it how we have consolidated sideways in the past 45 minuts – I expect a test of 905 shortly.
Let’s see if this one is for real. A breach of the Friday highs would be a first precursor of higher tape to come. Breadth on the SPX is currently 3.5:1 advancing. BTW, we just touched the Friday high on the Cubes.