I hope you all had a good week or at least stayed away from the stress. Hi Peejay, I hope work is going well. Are we getting some carryover into the specs? This broad market bullishness can be contagious, you know. Following your big up day yesterday, we got we got new highs on the Dow and NDX and this was helped along lower US Treasury yields. Traders are keeping an eye out for hyperextension from the 50 and 20 on the indices (we are about 4% and 5% from the 20 in the SPX and NDX) but only shorting intraday because the bulls are still in control. This week's hedging in SPX runs from 4100 to 4160, and today's ES futures value area is just straddling that area with a point of control (fairest price to do business) at 4158.50. ES futures were moving sideways within Thursday's value area for most of the overnight session but have moved higher than yesterday's rth high of 4166.50. We have monthly expirations today in and traders will think about how we will go as we reset hedging confines next week. This happens because people are hedged a certain way and much of that hedging expires today. The parameters from next week will become more apparent on Monday, but it is a hard read because we have that earnings thing to keep the bulls buying dips…and I would not be shocked to see fast liquidations if we maintain or go higher toward 4250, which is the high resistance point for next week. That that lightly for now, it is just theoretical. On the downside, we have a series of naked points of control. The first is at ES 4137.50 and then another at 4123.75. Below that we have a hedge at 4100 and yet another naked poc at 4091.75. These do not have to be visited right away, but traders will mark them as points to watch closely on any weakness. The other indices will play into this, but SPX is the benchmark to watch unless we get a rebound in yields…then watch the NDX too. It is highly probable that if you are trading anything related, you should be ok for Monday -- as the fix for this week is in.
