We are at a very interesting time. As mentioned in a previous blog, today is going to be a very volatile day. It will be interesting to see where the SPX will end up today. Based on open interest, the market makers will make the most money is the SPX settles in Sept around 1525. We are close to that value and the futures right now indicate a higher open.
Below is the chart on SPX. Notice, the price hit the .886 Fib value and bounced. It will be key to see if we close above the .866. If so, we are definitely going to go high and test the all time highs. If I had to guess, I don’t think we will do that in the month of October. If it occurs, I can see it taking place in November/December but who knows with this volatile market.
We are going to wait for the market to give us a sign for a trend trade.
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