Ok, we got a nice move off of the lows of last week without the bulls jumping for the exits with every bit of sell off. We're coming up on significant resistance, so I would expect a minor retracement tomorrow before finishing off a minuette wave A tomorrow or Wednesday. We spent 8 days in the downtrend,so I'm looking for at least 4 days of recovery. Today was one, so we should get a solid rest of the week.
With options expiration now only 2 weeks away after a potential wave 2 top, I will be weighting March options with some just out of the money Feb options. I hate to have the market grind around and lose time premium, so Feb options are definitely more risky at this point in the pattern.
I'll be looking for a wave 2 top in the 1110-1130 area.
Best to your trading.
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