I wish I had an easy call but I don’t and here is why. European markets are flat to slightly down on low volume. Despite a flat income and spending they have been selling it off this morning. Over the last several day sessions call buying is through the roof. Overnight volume, especially institutional volume is WAY long, though in the last few minutes at 9AM the overall market volume has just shifted negative erasing all overnight positive deltas. There are major signs of divergence and topping as well including steadily declining TICK readings throughout the rally. Premium is unchanged basically and program kicking is only happening at extremes. Who knows? We don’t care of course although we can’t weight trade probabilities on days like this. We will fade the OL or OH. If it breaks high later WATCH 72.75 for hard rejection. If it continues short we might sell under 66 into the OL. We will NOT sell into interim support under the OL starting at 62 as we will likely struggle through the low 60s.
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