The first chart that I have up is a weekly chart of the S&P. The first thing that I will look for is support and resistance lines. You can clearly see that the resistance up-trend line connecting the peaks is within a stones throw away from current prices. This area is around 1610-1615, and if I was a betting man, which I am, I would call that the top for the year only if we get there. Truly my gut feeling is that Thursday was the blow off top and we probably wont test that level for a while. Another noteworthy observation is the support up-trend line, that is the level that needs to be watched when we start the correction.
With the recent pressure Gold as been under ever since Goldman put a sell/short alert out, Gold has been getting crushed, and I think Sliver is going to follow that crush lower as well. The chart below is a weekly chart, and you can see that this morning we will be breaking a very key level of 25.15-25.25. This level has been a big support level for over two years, and this morning we will be breaking that two year level. I think we will get a lot of selling below this point, stops getting hit and short sellers coming in. A very low risk trade would be cash secured puts. Because the market is not open yet I can’t price out where or when I would sell them, but I would look out a couple months and sell between 15-20. If you can get a good price for the 17’s I would sell them all day long.