I was looking for a down move in S&P 500 and Euro today and it started in that direction at the start of the US session, looking like risk was coming off a bit in the early part of the US session. Then we had the US ISM coming out better than expected and S&P just blew out the 1317 resistance on the spike following the release. At the end of the day S&P 500 emini futures closes up 19,75 points or 1,50% at 1334.75. We closed right at the 61,8% Fibonacci retracement of the 1361 to 1252 move.
Last Friday, the S&P 500 futures closed at 1262 and the world was looking terrible with all kinds of default and one week later everything is all good and we are less than 30 points off the yearly high. What a turn around.
We have the long weekend now with the US markets closed on Monday, Independence Day. I expect the market to contiune to be choppy, but near term it feels like more upside is on the cards
I have updated the trading log here
Did quite a bit of adjustments to the S&P 500 emini structure as the move lower didn't happen.
Sold calls at 1340 and 1350 for August expiration, which basically means we need to see a move above the yearly high to make those positions lose money.
Good luck
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