Today is quadruple witching (simultaneous expiration of futures index options, stock index options, stock options, and single stock futures options) which can mean some crazy price movements as institutions do their last minute rollover transactions. However volatility of the last two days has been extremely high, so I don’t expect the options expiration impact to be noticed. The ES has not had 2 down days in a row this year; could today be the day? Only time will tell… The ES entered the cash open with a mixed short-term trend with a slight bullish bias. Price had dropped back into the DTG 90.50 level which was formerly the major line in the sand support for the ES. Being a little overanxious to see it hold as support again after the Asian and European session too the ES above it, I took a chance on a long opportunity that unfolded during the opening volatility. Unfortunately, that one didn’t work out. The ES drew a new line in the sand at 86.50 which it defended for half of the morning. Alas, 86.50 finally gave out and price tumbled through the DTG 82.75 level before bouncing in the DTG 77 level. The bounce was a potential long opportunity as institutional buyers for the first time came out and defended yesterdays low of 1577.
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