Kudos to MMs

[nitro]

842 becomes resistance unless we close above it.

 

[nitro]

Close call. 842 held as a close to close value, and shorts got run over this time into the close. We hit trend line resistance and backed off.

This creates some doubt in shorts selling into these levels, for now.

 

[nitro]

A test of 842 is imminent.

 

[nitro]

Support near here about 825ish SPX. If that goes, a test of the '02 support of about 782 SPX is imminent. I think it is a matter of time anyway.

 

[nitro]

782 imminent. We may as well get used to it.

 

[nitro]

Fear very high. I see no confirmation from EUR.JPY, although CHF.JPY has led the whole way down.

UUP a very reluctant player higher, especially at new SPX lows. Would not be surprised to see a massive backlash higher from SPX.

 

[nitro]

When will the selling stop? When there is no one left to sell.

Where is that? You have to look at the market and decide when the selling looks wimpy [up volume vs down volume is one way to estimate].

 

[nitro]

We are within 16 handles of 782 SPX [based on ES since cash closed.] I will be buying ESZ8 or ESH9 close to there, based on what is likely to be a dynamic momentum situation.

That is monster support. But nothing says we don't go waaaay lower.

 

[nitro]

Here we go. Within 6 handles of 782.

 

[nitro]

Options expiration may complicate things a little. Be patient if you want long. But when it does decide to go, it will be spectacular - probably 30 handles higher in five minutes, and then a monster squeeze.