SPX today closed on flat at the bottom of the range today, with the big talk of China rate cut. The price action today was mixed through out the day until the last hour. In that last hour the market started to turn around to create a bearish looking pattern.
Closing the day off 1/10th of a percent but the thing to look at is the selling pressure at the highs today. I think there will be followthrough tomorrow with downside pressure. Tomorrow might be a hard day for short vol traders, but at any cost I don’t think the market will drop much. For me it seems like we might be going into a sideways chop, a traders market.
I will keep the blog updated with all current trades and trades that I might be entering.