Breadth continues to trend lower at this stage. Cumulative ticks did bottom out but are now turning around. A/D lines are at very bearish levels (almost -2000 on the NYSE and -1700 on the Nas). I think we will retest the lows on the ES at 1108 but I don't think there is enough selling to break it. Volume is up and a lot heavier than yesterday but only slightly below the 30 day median average.
I'm going to enter into some OEX put BWB's but not for this week but August expiration which is next Friday. I think the worst the market can do is go sideways from here. I still like the 505/500/490 strikes. Volatility is up but not really seeing a rise in the skew which is a good sign for the bulls (it means the selling is pretty orderly).
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