New Trades

The Russell had a big move yesterday as the rest of the market was slightly lower. Based on the chart I don’t think we will have a lot of upside strength because of the multiple areas of resistance. I’m not overly bearish on the RUT/IWM until we see an actual trend change. Meaning if we can’t get above the multiple areas of resistance and we start to create lower highs.  I think if you were to have a diagonal or a call broken wing butterfly on would be smart. Both of those spreads are a little more forgiving if your anticipated directional move is wrong, just to too wrong.
Yesterday I added only one spread, and today I will be trying to add another one as well. Staying with my bearishness on the S&P’s I added a broken wing butterfly on SSO. Below is the risk profile.

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