Last Friday, in Friday, March 18, 2016 – We are now at 2038 ES, Approaching Initial Drop Point of 2070 Last December, we were at 2038ES. Overnight, we touched 2031ES and as high as ES2044 before opening at 2035ES. We did a bunch of consolidation today with slight trends to the upside.
We have a new article on what is the S&P500 – and have recorded the audio lesson for it – ready to be sent to our iTunes podcast. But we are experiencing some temporary technical issues that we hope to resolve soon.
Given last Thursday and Friday’s price action of holding onto gains post-Fed — I did not expect a drop today. Drops would be supported – and that’s what happened at 2031 and 2032 during the day.
Going forward, there’s a possibility of an extension and there’s also a possibility of a truncation. We’ll have to evaluate the overnight action to get a better sense.
Between the 3 indices, the Nasdaq is starting to pick up more speed whereas the Russell is starting to slow down (after fast moves last week).
Our trade of the week from last Wednesday post-Fed was held through the weekend and we benefited from some options time decay over the weekend with our bullish credit spread initiate when ES was at 1913. And this morning, we cashed out half just in case. Still, by the end of the week, we expect this trade to expire on Friday for max profit. Nothing wrong with taking some off the table.
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