Volatility is compressing again and despite the fact that traders are actively buying implied volatility, the market remains rangebound.
In short, many believe that we will see a bigger than normal price move in the days ahead.
The S&P 500 spread expiring today is around 20 points wide at the 2705 strike leaving traders a 2685 to 2725 range. As I mentioned last week, until we recover and hold above 2726, bounces will be selling opportunities – we have a potential sea change afoot.
Our Metastock swing system, TARGET RICH TRADES confirmed a short Thursday with the failure of 2717 (the first bounce into resistance) and we were able to add to this price short in the premarket. We will not add to this swing short until we close another day below 2697 and will take some profit at the 2703.75 region.
Check out today’s video below for trading analysis and price levels of interest on the S&P 500, Nasdaq, Gold and Crude Oil futures.
Stock Market Futures Update – February 11, 2019
The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.