This S&P range we have been in for the past 2 weeks has pushed many traders to levels of frustration they haven’t seen since… since… since well yesterday really.
We float to the highs. Sell programs take us right back down to low ends of the range and a few buy programs push shorts to cover positions. Rinse and repeat.
WallStJesus and I never purport to getting too bias on anything because in this market that same bias is also the foundation for your problems as a trader. So, after reading this article, do not run out and short everything thinking the world will collapse. It never really does and our emotions exaggerate the foreseeable future to fit our current bias and narratives.
With that being said, the flow has turned pretty bearish today and stocks are trading with much more size and pressure on the offer side versus that bid.
There was also some monster IWM puts bought last week to the tune of around $10 mm.
What does this all add up to?
Watch for a retest though of $212.5 on the SPY if we get down there you’re talking about a whole lot of overhead supply that’s going to come out of this market before any more upside is seen!
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