Yesterdays late day spike to $210 on the $SPY was a farewell of sorts. A short kiss goodbye to a level that was reached for the first time in human history this year. Perhaps we get a tearful reunion later this year, but for now the Captain Obvious side is saying more downside lies ahead.
What else can you say after a day like today? This morning in the chat room I stated how perfect it would be to see my big $IWM $120 figure before the close. That was my key support/resistance line I have been talking about for all of 2015. Last nights recap was titled "Till Support Do Us Part" for a reason.
Once we broke support it was a time to part from the bullish stance. But with today's action, the support is there, and the bullish perspective is still here to live another day.
Today's rally came just as everyone had predicted... right? Amid the heavy selling and broken support for most of this past Fridays trading session it was tough to maintain a bullish stance on the market. The terrible market breath (sic). The rolling over of the averages.... but alas. The markets again defied the odds. It rallied overnight, it rallied at the open... and then it rallied some more. The streak was snapped. The world was saved. We will live another day to inhale all that garlic breath.
$IWM has offered a great insight in 2015 - in terms of timing a reversal in the market. That $120 level has acted as a spring board for higher prices. Ultimately on Friday that $119.88 close left it under key support. However today's massive rally got it back over the $121 level and set the stage for a continuation of today's bullish action.
Here is today's Option Action Recap
