Here we are again, S&P 1040. The nonsense rebound to a poor GDP figure that was 'better than expected' only lasted an hour or so. As always, the more time you test a level, the more prone it is to eventually breaking. I do expect 1040 to eventually break. We can use that level as a pivot, being short below and stopping out on a move back above. Whatever happens intraday, the close of course is more important. Below 1040 we have no tangible support until 1010. If it appears we will close below 1040 late in the day or early next week, I might bring out some SPY put options for the first time in a long time to generate some extra alpha. The problem is, 1-2 more days like this and we're at extreme oversold levels so I'd actually prefer a bounce first.
One side note - I have been saying the past few days to expect Chinese PMI overnight Sunday, that is wrong. For some reason I was thinking Monday was the 1st of the month but it's actually Wednesday so Chinese PMI should come Tuesday evening.
EDIT 10:27 AM - nevermind then, Ben Bernanke came from Mount Olympus and apparently said good words that added 10 S&P points.
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