Monday, May 3, 2021

SPX Update: The Options in More Detail

First, I apologize for taking an extra day off and missing Friday.  Truly, though, there was not much to add, and both options discussed in the prior update are still on the table.  I've drawn them in more detail on the chart below:

Interesting to note how the expanded flat (discussed above) would shake out on the bigger picture chart:

In conclusion, while expanded flats are completely unpredictable, I somewhat like the idea here, as it would accomplish a successful backtest of the long-term green line before rallying up to new highs.  We'll see if the market likes that idea, too.  Either way, the market is still pointed higher, either immediately, or after said correction.  Trade safe.

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