Risk off again and what a reversal in the S&P500 futures after the gap open!!!
It was a more or less one way trading after the gap higher following the news out of the US that Washington had finally reached an agreement on debt bill to avoid a US default. I guess it was more or less expected and the focus shifted to the weak US ISM Manufacturing PMI that came in much lower than expected at 50.9 vs the 55 expected. We had a range of 34.50 points yesterday and the volume picked up 2.6m contracts traded in the S&P500 Emini futures.
We now have support at 1261.75, 1257 and key support at 1252.25 (June low).
Resistance at 1291 and 1304.75.
Given the size of the recent move I think we will see a bounce higher Tuesday.
Crude was all over the place yesterday, but to keep it simple it failed at 98.60 and broke below the key support at 94.65, which opens for a move toward the key support at 90.
Closed the Euro 1,42 puts for 1650 USD profit. Made several adjustments on the ES and Crude oil. The focus shifts to the downside in the Crude, so will look for a move down to 90 now, meaning I will sell puts and trade short in the Crude oil futures.
Good luck
